Is the ‘Tidy-Up’ KonMari Craze Dampening the Self-Storage Sector?

Marie Kondo, the Japanese organizational guru whose tidying-up trend is sweeping the country, may be prompting one commercial real estate sector to lose its joy, suggests Stephen Gandel, an opinion writer for Bloomberg. Shares of self-storage investment trusts—one of the hottest REITS last year—are seeing a significant slowdown this year.

Self-storage units popped up across the country as consumers showed high demand for storing all of their extra belongings. Storage prices rose and profits soared for investors. But supply may be catching up, along with the “KonMari-method mania and its minimalist appeal,” writes Gandel.

Gandel notes that donation stores nationwide have reported significant increases in donated goods since late last year, which coincides with Netflix’s airing of “Tidying Up with Marie Kondo.” Kondo’s main organization principle is to keep only what brings you joy, and not to accumulate items at home or stash belongings away in storage facilities.

As Marie Kondo has been teaching the public to downsize their belongings, developers have been rapidly expanding storage spaces across the country. Developers spent about $4 billion when they added around 100 million square feet of storage facilities last year—double what they spent in 2016, according to Green Street Advisors, a real estate consulting firm. Green Street estimates that this year will likely continue to be near peak levels too.

On a conference call with analysts last week, Public Storage CEO Joe Russell cautioned that the storage facility market is likely to be headed for a cooling down. “I think there is an element of both disappointment and potentially and ultimately some level of distress that could come,” Russell said.

 

I read this article at: Realtor Magazine

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Sabrina is a native Californian born and raised in the Silicon Valley with a passion for Residential Real Estate. Partnered with her mother-in-law Susan - they are The Caton Team. With over 35 years of combined, local Real Estate experience and knowledge – would’t you like The Caton Team to represent you? Let us know how we can be of service. Contact us any time. Call | Text at: 650-799-4333 | Email Info@TheCatonTeam.com The Caton Team believes, in order to be successful in the San Fransisco | Peninsula | Bay Area | Silicon Valley Real Estate Market we have to think and act differently. We do this by positioning our clients in the strongest light, representing them with the utmost integrity, while strategically maneuvering through negotiations and contracts. Together we make dreams come true. The Peninsula is our backyard - let us help make it yours. We represent Buyer’s and Seller’s throughout the Bay Area. The Caton Team – Susan & Sabrina A Family of Realtors Effective. Efficient. Responsive. What can we do for you?

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