Joe Margolis, CEO at Extra Space Storage Inc. (NYSE: EXR), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.
In discussing overall supply and demand balance, Margolis said Extra Space Storage believes that peak deliveries in supply occurred in 2018 and new deliveries in 2019 will be more moderate.
“We continue to see supply being delivered in markets with few barriers to entry like Texas and Florida, and less so to areas with barriers to entry like California,” he said.
Margolis also said that the REIT’s goal is to maximize revenue and it has four tools to do so: occupancy, rate, discounting, and marketing spend. He said they are balanced differently based on unit, store, and market.
Margolis added that the acquisitions market for self-storage assets is very frothy, and that 84% of Extra Space Storage’s acquisitions in 2018 were done through off-market transactions.