During the recent ISS Las Vegas World Expo, we had the opportunity to engage with industry experts, gaining insights into the current self-storage landscape. James speaks with Garrett Byrd of Storage Authority discussing how Storage Authority assists professionals in navigating self-storage investment, covering everything from finding land to operational guidance.
James: We're here with Garrett from Storage Authority. So Garrett, Self Storage caught a lot of positive attention after COVID-19 because it was such a resilient commercial real estate asset class. So it attracted a lot of new investors to start dipping their toes in the water. How do you sort of help guide and advise people new to this space in either building or owning their first facility and leasing it up and making it profitable?
Garrett: Yeah, absolutely. So really our model is for the busy professional where they have the money to deploy, they've done great in their own business or their own career, but they're like, how do I get started in Self Storage? So they trust franchising, they trust the system. So we literally help them find land, get through development, which is going to be a huge learning curve. Like money could be made or lost through development. And then obviously when it comes to operations, having a Ritz Carlton versus Motel 6 facility, it's really night and day for our owners because they just wouldn't know where to get started. So that's our big tagline for guidance.
James: Absolutely. Have you noticed a big influx of solopreneurs in the past 12, 18, 24 months as compared to in the past? People getting involved in Self Storage or dipping their toes in the water?
Garrett: Well, honestly, with the interest rates, there's a little bit of a pullback. So they're moving forward because they know the asset is fantastic and they want to get into it. Once the interest rates kind of peaked, everybody kind of hit the sidelines, they're getting back into it now. I always like to say the ones that forge ahead now, and if they can pencil in today's market when you refinance out, you're going to be thankful you did move forward.
James: Absolutely. Especially with so much new supply getting condensed, not as much supply is coming online. So they'll be in a great position. So Garrett, really the last portion of this is, what would you say is a common pitfall for people dipping their toes in the water for Self Storage? What are some common pitfalls you can help them avoid? What's your one grain of top advice?
Garrett: Yeah, honestly, like I said earlier, money can be made or lost in the development guidance. With our guidance, we literally have our contractors, architects sign an addendum. If it's not on paper, if it's not a solid construction contract, end of the day, the owners are paying for it. So we protect them in that aspect because we want them to be happy, successful owners, and if they can win through development, they're going to have a fantastic site.
James: Awesome, Garrett. Thank you so much for everything you do in the industry, and it was great speaking with you.
Garrett: Absolutely. Appreciate you. Thanks, Radius, for everything you do, too.
