Chris Marr, president and CEO of CubeSmart (NYSE: CUBE), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Southern California and Florida are among CubeSmart’s top-performing markets. Marr explained that in California, new supply is being kept in check by strict regulations. Given the region’s strong population growth, “it’s a good market dynamic,” he said.
The self-storage market in Florida, meanwhile, benefits from the steady movement of people into the state. A smaller impact comes from the disruption caused by hurricanes, Marr said.
Marr also commented on the rise in construction costs, notably in raw materials such as steel, and in labor. At the same time, reduced staffing at municipalities is delaying the time it takes to complete approvals.
“We’re definitely seeing an impact on a variety of fronts in our new construction,” Marr said.