How Do Self-Storage REITs Differentiate Themselves?
REITs, with their size, diversity, frequency of local market leadership and broader access to capital, have certain advantages over local operators. Marketing and branding: The self-storage business is one of the few real estate sectors where a brand name can be established and cultivated. Moodys views establishing a national brand namewith its brand awareness and pricing strengthsas one of the keys to long-term success and high ratings for a self-storage REIT. Operational acumen: Operators with solid infrastructure and customer service functions have a distinct competitive edgea reflection of self-storages operating company characteristics. An example of best practices among REITs is having a 24-hour call center that allows for centralized customer service and leasing. Owners with only a few properties have difficulty achieving this. Diversification and national presence: Operators with geographically diversified portfolios (and particularly leadership in local markets) provide more c
