Joe Margolis, CEO of Extra Space Storage Inc. (NYSE: EXR), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.
Margolis took over the helm at Extra Space at the start of 2017.
Margolis noted that significant new supply of storage space is appearing in certain markets, which is putting pressure on Extra Space’s operating performance.
Meanwhile, after several years of increasing rental rates by double digits in some markets, it’s time for a pause, Margolis said: “It’s hard to continually push rates 15 percent without backing off.”
Margolis also said he expects the company’s third-party management platform to expand. He noted that third-party management provides Extra Space with revenue without capital investment, in addition to increased scale and access to data. Furthermore, it creates an acquisition pipeline, Margolis noted.