While South Florida hasn't become as inundated with new facilities as cities like Phoenix, a glut of properties is becoming a concern. The high level of new construction means less-experienced players will be weeded out, observers say. While storage is relatively easy to build, managing can be more complex as other property types. Local governments have effectively added a barrier to entry by demanding more attractive and more expensively built facilities, which requires more substantial developers. The facilities generate far less traffic than retail properties, and most ban beat-up cars and contraband.
Odd things do turn up in storage space, true to the stereotype.
Stor-All once evicted a tenant who hadn't paid in months. Among the stuff the tenant left behind was an urn with a relative's remains. Stor-All employees haven't been able to bring themselves to throw away the relic, Anderson said. Because the space isn't pre-leased to large tenants, reaching full cash flow can take a couple of years. If one person moves out of a self-storage facility, there's no impact.