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Have you seen a slowdown in the rental market the last few months?

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  • Have you seen a slowdown in the rental market the last few months?

    I'm not sure if it's just me or a wider phenomenon, but I have more open units now than I've had in many years. I'm not complaining, since I've been at 98-99% for a very long time, but for the past few months I've been running at 92-94%. Going from 3-5 open units to 18-22 open units is something different for us.

    Are you seeing the same thing? Is this a national slowdown or just local? (or just me)
    In no way affiliated with Storman software.

  • #2
    I agree with you. I have gone from a constant 100% full to 95% to 96% full. I am at 23 vacancies but most are still the popular 5x10 units that the college kids came back and emptied out when they moved in to their dorms or apts. I have made mention here in a couple other threads about the slow down. I see it and the local real estate people are seeing a swing. The economy is better and that, IMO, means people are not moving around from one bad job to the next and staying put. The interest rates have gone up so the housing market has slowed.

    I have already been in talks with the owner for a newer/different marketing plan here. It would entail something I preach about all the time and something my tenants have shared with me.
    "Never let the inmates run the asylum!"

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    • #3
      We just had our 2 busiest months back-to-back in 6 years. We just finished an expansion so have units to rent now. But all of this comes with a few other facilities opening up in the last 6 months all within 5 miles of me, so doesn't seem to be slowing down here at all. Could be that people are just moving here, but usually Nov/Dec are our slowest months and instead been our 2 busiest this season.

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      • #4
        Originally posted by letsgosonics View Post
        We just had our 2 busiest months back-to-back in 6 years. We just finished an expansion so have units to rent now. But all of this comes with a few other facilities opening up in the last 6 months all within 5 miles of me, so doesn't seem to be slowing down here at all. Could be that people are just moving here, but usually Nov/Dec are our slowest months and instead been our 2 busiest this season.
        That could be it too. California especially and Oregon/Washington to an extent have had people moving away. People out here are fed up with the taxes and loss of property values due to sanctuary cities and the booming homeless populations. I saw and heard the other day that 3 close states are have lots of new people moving there....Nevada, Utah and Idaho.
        "Never let the inmates run the asylum!"

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        • #5
          Our market is super sluggish, though I had two move ins today-We had more move outs than move ins last year though. We're in the higher 80's-historically spring will turn it around. (crosses fingers)
          90% of what you're stressing about now won't even be relevant in a year. Breathe easy. ~Wesley Snipes

          WA State

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          • #6
            We've had more move-outs recently as well, I believe its due to the slower economy here. We are still renting units here and there, so its not all move-outs.
            AmyLou

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            • #7
              We have had our best winter ever so far this year. So I am not seeing a slow down at all.

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              • #8
                I truly believe that, just like the west coast states, Ca., Or., and Wa., the exodus from these states because of the socialism like politics and taxes and homeless populations is causing a shift in population in other states that is causing a steady influx of storage customers. A move from this area is on my radar. Fed up with the idiots here and the loss of population over the last 2-3 years is the proof of it. The neighboring states of Nevada, Idaho and Utah are having population increases because of it. I am glad I will be gone when English is no longer the primary language.
                "Never let the inmates run the asylum!"

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                • #9
                  Originally posted by pacnwstorage View Post
                  I truly believe that, just like the west coast states, Ca., Or., and Wa., the exodus from these states because of the socialism like politics and taxes and homeless populations is causing a shift in population in other states that is causing a steady influx of storage customers. A move from this area is on my radar. Fed up with the idiots here and the loss of population over the last 2-3 years is the proof of it. The neighboring states of Nevada, Idaho and Utah are having population increases because of it. I am glad I will be gone when English is no longer the primary language.
                  PAC, The thing that gets me is the same people moving out will then vote for the same type of people, thus creating the same issue they fled from. What is wrong with some people and why can't they see it?
                  Joe Krezdorn
                  DAK Self Storage
                  Leesport, PA 19533
                  www.dakselfstorage.com

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                  • #10
                    That is why the Oregon I live in now is way different than when I moved here 23 years ago. As the influx of Ca. people came north and started getting involved in the politics and voting, the state turned and the same happened with Washington. California is the poster child for what doesn't work and continues not to work and to any person that has a modicum of common sense it should be readily apparent what is wrong with that state. Moving around the 3 west coast states is difficult because of having to dodge all the people's bodies with their heads in the sand.

                    My cousin that was burned out in the Paradise, Ca. fire has been talking to me about going back to Mo. after 45+ years. Putting up with heat and humidity and winters is way easier than putting up with the socialist politics on the west coast.


                    I will put it out there this way: I know I rub some here the wrong way but I am not in a popularity contest. You ask for honesty and you get it from me.

                    I have set record numbers at 2 facilities now. I have had 5 years in a row here of increases. I have increased over $100k from the first record year I was here, I have had "zero receivables" many months since here and Dec. was 3 months in a row, I have not had an auction in over 1.5 years and I have never had a break in. I run the place by myself and just need a part/full time maint man. Willing to work 6 days a week. Non smoker and no drugs.
                    If there is another chance out there for me in the self storage industry, I am open to communication.
                    Last edited by pacnwstorage; 4th January 2019, 12:51 PM.
                    "Never let the inmates run the asylum!"

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                    • #11
                      We are located in northern Illinois and yes we experienced a slow down the last few months.
                      I chalk it up to many people fleeing our broke state. Our area has been oversatulated with new storage facilities in the last couple of years also. Lately I have noticed more tenants moving out, giving the reason that they realized they have not used or needed their stored possessions for years so why keep paying to store them.

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                      • #12
                        I'm also in the greater chicagoland metro market- our incoming phone calls (and occupancy) started dropping about june/july - right with the slowdown in housing sales/ real estate market.
                        i think that the days of big increases in occupancy and easy price increases for our industry are about over for a time. Business cycles are always cyclical, and then factor in all the new construction and unit supply.. Of course this may be different in some markets.. but our industry has had such tremendous growth the last 10 or 20 years a slowdown is unavoidable.
                        -Related- it could be just me, but i see facility sales and asking pricing dropping in some markets- Ive been shopping to buy another site for some time but couldn't believe the prices people have been paying.
                        I've started seeing some of the same properties over and over in marketing emails from the big storage brokers- tells me they're not selling at the ask price. -Perhaps bc others are also seeing vacancies increase and rental growth slowing?

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                        • #13
                          Originally posted by a1storageguy View Post
                          I'm also in the greater chicagoland metro market- our incoming phone calls (and occupancy) started dropping about june/july - right with the slowdown in housing sales/ real estate market.
                          i think that the days of big increases in occupancy and easy price increases for our industry are about over for a time. Business cycles are always cyclical, and then factor in all the new construction and unit supply.. Of course this may be different in some markets.. but our industry has had such tremendous growth the last 10 or 20 years a slowdown is unavoidable.
                          -Related- it could be just me, but i see facility sales and asking pricing dropping in some markets- Ive been shopping to buy another site for some time but couldn't believe the prices people have been paying.
                          I've started seeing some of the same properties over and over in marketing emails from the big storage brokers- tells me they're not selling at the ask price. -Perhaps bc others are also seeing vacancies increase and rental growth slowing?
                          Ditto. Several facilities in the area are now running move in specials and for the longest time they did not need to. I also think the glut of newer facilities has taken it's toll. I know a local owner that had 2 facilities he kept full and he raised rents right and left. He then built 2 more facilities and they had higher rents yet. Now he was in to see me the other day telling me about 70% to 75% full and running move in specials at all 4 of them. The family I work for does business in Idaho as well. Idaho has had an influx of population moving away from Ca., Or. and Wa. I keep bugging them to get a facility up in Idaho. That states politics appeals to me as well because living in Oregon is becoming unbearable.
                          "Never let the inmates run the asylum!"

                          Comment


                          • #14
                            Originally posted by Storman View Post
                            I'm not sure if it's just me or a wider phenomenon, but I have more open units now than I've had in many years. I'm not complaining, since I've been at 98-99% for a very long time, but for the past few months I've been running at 92-94%. Going from 3-5 open units to 18-22 open units is something different for us.

                            Are you seeing the same thing? Is this a national slowdown or just local? (or just me)
                            I've had an empty 10x20 unit for a month now, which is unheard of.

                            Comment


                            • #15
                              Originally posted by RandyL View Post
                              We have had our best winter ever so far this year. So I am not seeing a slow down at all.
                              What state are you in?

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