Investigating the Largest Merger in Self-Storage History: Extra Space and Life Storage
The significant merger between Extra Space Storage and Life Storage, two leading American Real Estate Investment Trusts (REITs) revolving around self-storage, marks a historical shift in the industry. The merger was consummated on July 20, 2023, upon shareholders’ approval from both sides. The combined entity emerges as the largest self-storage operator in the United States, boasting over 3,500 locations spread across 43 states, over two million customers, and around 270 million square feet of rentable storage. The enterprise value post-merger is approximately $46 billion.
The said merger was covered in depth by Erica Shatzer, Editor of Modern Storage Media, featuring an interview with the CEO of Extra Space Storage, Joe Margolis.
Margolis, who joined the Extra Space Storage board of directors in 2005 and has held various executive positions, believes this merger heralds long-term value and synergies. This union allows Extra Space to bolster its balance sheet, decrease its capital cost, and expand its purchase power.
Extra Space is testing a dual-brand strategy, seemingly an unconventional approach within the self-storage industry but common in other sectors like hospitality. This game plan allows for doubling the digital real estate in “storage near me” online searches, reportedly one of the primary motivations for the dual-brand scheme.
Margolis emphasizes that regardless of the brand, every store within the combined portfolio will operate using the same methods, focusing on clean and safe storage facilities and excellent customer experiences driven by solid technology platforms.
Could Be Better If:
The blog post is comprehensive in detail, but could still be improved with:
- Visual aids - Graphical representations like charts, infographics, or maps could provide a more engaging, visually appealing way to present the data.
- Added perspectives - Including inputs from industry analysts and investors could provide a well-rounded understanding of the merger's impact on the market.
- More emphasis on SEO practices - Utilizing keyword research to target high-volume industry-related terms could improve search discoverability.
- More focus on readers - Some elements could be added to make the readers relate more with the story or extract some learning or insights for their own businesses.
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🔒📚 Hi! I'm Eric Manning, a self-storage operations nerd and lifelong learner. 🗝️ My articles blend industry know-how with a dash of humor and wisdom. Whether you're a storage newbie or a pro, join me as we explore the world of storage, one witty insight at a time! 📦😊🔑
