The Pack Rat Indicator: Why Hoarding Is a Good Sign

December 15, 2016

The Pack Rat Indicator: Why Hoarding Is a Good Sign

No longer just for death, disaster, and divorce, self-storage construction is booming as Americans buy more stuff.

For John Bull, a Portland, Ore.-based contractor who specializes in self-storage centers, a typical day entails supervising a crack, 10-person crew that uses light-gauge steel and screw guns to build 100,000-square-foot monuments to American materialism. They can finish one every four months, but these days that’s just not fast enough. Bull’s services are in high-demand—so much that he’s been forced to supplement crews with less-experienced workers. “I haven’t seen this much business come on line at once in 20 years,” he said.

Following the Great Recession, it seemed that U.S. consumers regained confidence faster than people who build and finance these mini-warehouses. That was good news for landlords and bad news for people with cluttered basements, as storage rents rose and venture capitalists began to descend.

But there is good cheer for holiday shoppers eager to fill their parking lot sleighs: The self-storage industry is building again. By the end of October, developers spent $1.5 billion putting up new storage units and fixing old ones, according to U.S. Census data. That’s more than the industry spent in any full year since 1993, when the government started counting.

Read Full Article Located Here

Print Friendly, PDF & Email
Go Back
John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.