What kind of effect do you think the media will have on our industry in 2008? Is the mainstream media creating an unnecessary paranoia among investors? Let me know your thoughts.

Not sure I would call it 'paranoia', but the old adage of perception = reality is evident when folks are constantly bombarded by news of a tanking economy? The question for each of us is, is it really? Is what I see, read, and hear happening to me or to anyone I know?

When folks who could not have afforded homes in the first place are given loans they should have never received and the predictable happens, is that a true sign of trouble or of fiscal responsibility on the parts of lender and borrower? Are the issues that drive storage building or unit renting substantively different from where they were some months ago?

Judging from last week's Vegas show, interest in the industry has hardly slowed down, and the vast majority of owners who attended are somewhere in the pipeline - they have land, some are in the bureaucratic process, they're hammering out building and security contracts, etc. In short, they were not there to kick tires.

The media often paints a very broad picture based on the misfortunes of a few. Some of it based on the media's own political considerations. The point is, the isolated incidents of folks purported to be struggling may or may not be indicative of what's happening in your community.

Hi Troy,

It is not just the news that paints our industry in an unsavory manner, it is TV and movies. Last week I was watching a rerun of the show 24 - the terrorists were storing amunition in a self-storage unit. Of course, it blew up and the building was destroyed. Multiple shots of this ruined self-storage facility on the TV creating an impression in some minds that this happens all the time!
The self-storage business can have a clandestine nature to it, which is why owners and managers need to be diligent regarding who stores at their facility.

__________________
Randy J Tipton, CIC
President
Universal Insurance
3300 N Central Ave, Suite 1520
Phoenix, AZ 85012
randyt@univins.com
800-844-2101 extension 1153

We make sure to tell all our tenets at move in "no rocket launchers, nuclear weapons, grenades, flame throwers or biological weapons of any kind!" The we all laugh and go on.

The media has always made us the hangout for bad guys -- if we show a since of humor about it the customers feel more at ease.

I know what you mean. I recently saw an old episode of CSI where illegal sex change operations were being performed in a storage unit. After one of the patients died during surgery the bloody mess was left behind.

Troy, Here in Arizona our Arizona Self Storage Association has put together a PR campaign and we will soon have the ability to get to the press our positive press releases which we think by being pro active we can help change any of the negative perceptions the public may have. I will keep you informed when we do one and perhaps you could get it printed in the ISS magazine to help other states follow suit.

__________________
Mel Holsinger, President
Professional Self Storage Management, LLC
3434 E. Kleindale Ste. E
Tucson, AZ 85716
O: 520.320.9135
F: 520.320.9435
www.proselfstorage.com

t-v shows and the like aside, there remains the broader issue of perception. This is a recent story of a facility being turned down in metro Kansas City,
www.kansascity.com | 02/26/2008 | Olathe Planning Commission turns down proposed self-storage facility.

Here are a couple of particularly salient items from it:

"Commissioners cited safety concerns with the area, and did not want the project to be one of the first things visible at an entrance to the city.

Tom Marsh, commission chairman, said he felt that a warehouse would extend an already undesirable entrance to the city with the gas pipeline facility immediately to the east of the property."

Clearly, these folks have not seen what recent Facility of the Year winners and contestants look like. No one ever says we don't want a Wal-Mart or a CVS to be among the first things visitors see coming in, but the perception regarding storage remains.

To be fair, some of the perception is based on past reality and politicos simply have not kept up or haven't cared to keep up with how the industry has redefined itself.

The press over here always scare the puplic into dropping the price of thier property before the market demands it. Our economy is not that great right now but I dont see anyone that we know in a finacial crisis! I have been in Self Storage 3 years and our industry has not seen a down turn in the housing market yet. I am presuming that many of you have been going for some time and was wondering how this will affect our business during the slow down period. Many people have different ideas as to what will happen but nothing speaks louder than "EXPERIENCE". Can any of you recall a recesion? If so how did it affect you as a storage opperater? Thanks