For the Self Storage Owner/Operator this is the bottom line & STOR was created with this purpose in mind. Companies and individuals invest in Self Storage for this reason and for most there is limited exposure to direct investments other than buying a REIT trading in the markets. It's a phenomenal business and like any business it takes much more time and attention than those outside the industry truly understand. But unlike many businesses there are limited ways to increase profits in a particular market.
One can only increase rates so much till you hurt occupancy and risk losing many customers in a given market. And you can only get so many customers to participate in an insurance program and purchase ancillary items to increase revenue. So while you may have a very well running property in most cases the opportunity to grow is limited based on the local market.
For the STORcoin buyer not familiar with the industry of Self Storage, this section is not particularly geared to you, but a read through will help you understand how and why we feel confident the future of STOR is very bright and long lasting. Also we are burying the idea of a potential future Fork here just to see how many notice. More on that later.
With the current Cap Rates driven down into the 5's in some areas one has to wonder if the market values may have peaked at the time of this writing (Q1 2018) and with the ever increasing cost for development it's difficult to see where the market may be heading in terms of price appreciation. Land is difficult to find at a reasonable price and the entitlement process in many areas is excruciating with myriad agencies having to weigh in prior to even Site Plan approval.
For those in the industry this is not new information but the introduction of STOR Coin to the industry is! Some may not appreciate the unique nature of the Self Storage industry related to larges numbers of relatively small monthly payments with a fairly controllable expense structure; but if you are an owner of a facility or a buyer of STORcoin that feature is the main reason STORcoin is to become a dominant and useful cryptocurrency.
One can only increase rates so much till you hurt occupancy and risk losing many customers in a given market. And you can only get so many customers to participate in an insurance program and purchase ancillary items to increase revenue. So while you may have a very well running property in most cases the opportunity to grow is limited based on the local market.
For the STORcoin buyer not familiar with the industry of Self Storage, this section is not particularly geared to you, but a read through will help you understand how and why we feel confident the future of STOR is very bright and long lasting. Also we are burying the idea of a potential future Fork here just to see how many notice. More on that later.
With the current Cap Rates driven down into the 5's in some areas one has to wonder if the market values may have peaked at the time of this writing (Q1 2018) and with the ever increasing cost for development it's difficult to see where the market may be heading in terms of price appreciation. Land is difficult to find at a reasonable price and the entitlement process in many areas is excruciating with myriad agencies having to weigh in prior to even Site Plan approval.
For those in the industry this is not new information but the introduction of STOR Coin to the industry is! Some may not appreciate the unique nature of the Self Storage industry related to larges numbers of relatively small monthly payments with a fairly controllable expense structure; but if you are an owner of a facility or a buyer of STORcoin that feature is the main reason STORcoin is to become a dominant and useful cryptocurrency.
