The dust has settled and we are comfortably settled in our new offices.  The amazing deal the Company was able to negotiate is reflective of the market we are in today.  Sure Storage USA was able to secure class “A” Scottsdale Airpark space that is 1/10th of the price it was 3 years ago.  We now have the correct office space at a remarkable value.  The Company is finding several self-storage owners who are having to make the same type of deals we found with our office space.  While the self-storage industry has fared much better than all other commercial real estate groups, several owners are in the same situation as their counterparts in other less successful areas of the commercial market.  Many of these owners ventured outside their core business and became involved in other real estate ventures.  Those investments are now greatly exasperating their resources and many have turned to their only profitable assets, their self-storage facilities, to find help.  Unfortunately for them, they are selling their profitable self-storage assets to raise cash to solve their other real estate investments that have not performed as planned.

This is positive news for Sure Storage USA and the growth opportunities for the Company are greater than ever.  It is fairly safe to say that we will never again have this opportunity to roll up self-storage assets that we have today.  We will never again in our lifetime see a market unravel like it has over the past 2 years.  Sure Storage USA is the right Company at the right time with the right financial opportunity to be successful.  There have been two significant rollups in the last 10 years and both did so during the peak of the market and consequently they significantly overpaid for their assets.  Simply Storage is one of these operators who has now lost a substantial number of its assets back to its lenders and is on the verge of collapse.  The other operator is U-Store-It, which has been able to secure ½ billion dollars to replace old debt and rescue itself.  It is extremely impressive how U-Store-It was able to overcome its extremely over leveraged position and still raise ½ billion dollars in today’s market.  The capital markets like the self-storage industry and they understand that U-Store-It will be in a much better position when the market corrects and when runaway inflation hits us in 3 – 3.5 years.

All of us continue to race to the winners circle at Sure Storage USA.  The Company has been blessed with a tremendous opportunity and our team continues to seize it every day. Thank you  for joining in the fun with us.

This entry was posted on Friday, March 5th, 2010 at 1:48 pm and is filed under Arizona Mini Storage, Self Storage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.