Business goes in cycles where downturns usually follow boom years. From 2002 through 2007, the economic climate throughout the United States and especially in Nevada was excellent. I believe that we were all amazed at the number of new self storage facilities that were constructed and, in most part, at the ease in which they filled up. “Follow the construction of the rooftops” (single family home subdivisions) became the “mantra” of self storage developers. The model worked very well and today many of us own facilities with stabilized occupancies that cash flow quite nicely. It is important to note however, that in almost every urban market in Nevada – Las Vegas, Carson City and Reno, that supply of self storage units is high while demand is low. This softness in the market has created a tremendous discounting in prices as well as lots of move-in specials. Today most operators are seeing a reduction in their gross revenues and a comparable reduction in their net operating income. It is the time to practice strong marketing and operational techniques while we wait out the economic downturn. It is a time of patience that builds character.

On the legislative scene, it appears that for this current session there have NOT been any attempts by the legislature to tax self storage. A sales tax on self storage has been a growing concern of our membership. We have seen a variety of states impose such a tax on self storage operators. It has become apparent to our board of directors and many of our members that the Nevada Lien law could use some revision. Currently the California Self Storage Association has requested that the California legislature revise the statute in that state. We are watching their process, and if they are successful, then we would like to follow suit. In future issues we will keep you posted.

As mentioned in previous issues, the Nevada Self Storage Association is working on providing additional services to its members. This will include a Resource Manual, sample lease ( available at a small fee) and educational seminars. As a board of directors we are working on providing these services to our members but would also like to hear from you regarding what you expect and want to see from this State organization. Please feel free to email me any needs, comments or questions at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .