FOCUS ON

MEET MICHAEL ALAFACI

SSAA BOARD MEMBER AND DEPUTY CHAIR

Michael has been in the self storage industry for almost 15 years. He was first recruited by Michael Tate and David Scanlen to join Storage King.

Insider: What benefits do you find to being on the Board?

Michael: The benefits I’ve found in being on the Board include the ability to network where there would otherwise possibly be barriers. Being able to share ideas, experiences and knowledge can go a long way in helping the industry evolve as a whole, for the benefit of its members and all other stakeholders.

How important do you find the SSAA to the industry?

I believe the SSAA plays a very important role in the industry as the conduit for advice, information and education. This has been particularly evident in the current COVID-19 situation where the SSAA made approaches to State and Federal Governments on behalf of the industry.

How do you see the current growth of the industry in your area

I see the growth of the industry starting to level out to some extent for a number of reasons. Some of those reasons relate to the increasing difficulty in sourcing quality locations. This is due partly to the sheer price of real estate which often make projects more difficult to stack up. Having said this, the current conditions and resulting uncertainty may potentially create some opportunities. I also believe there is still the ongoing issue in the industry of not enough product awareness in the general public.

How has this changed since you started?

When I first started, there seemed to be a flurry of acquisition activity that seemed to continue on for a few years straight. It then levelled out before taking off again just a few years ago. So it was my observation that things tend to move in waves.

I also believe that our industry’s product awareness and profile has lifted somewhat (good or bad) as a result of shows such as Storage Wars etc. Just about every time I get asked about what I do for work, questions like these inevitably pop up ‘Oh! You mean like that show Storage Wars?’ or ‘So do you guys do those onsite auctions as well?’ so I then go into my industry explanation and clarification mode.

Do you plan on expanding? If not, why not?

I can’t see us stopping expanding any time soon, but I do believe that the whole industry’s rate of expansion will slow down (or a ‘flattening of the curve’ as the media loves saying these days). I also believe this is needed to avoid a situation of oversupply.

How long have you been a member of the SSAA?

I have been a member of the SSAA since I joined Storage King back in 2005.

What benefits do you find from attending SSAA Conventions?

Last year was my first ever SSAA Convention and I can say that it was a very good way of meeting industry peers and other industry participants. Historically, I have only attended Storage King events, so this helped me expand my experience and my involvement more broadly in the industry as a whole.

What advice would you give someone looking to come into the self storage business?

This is a great industry to be involved in and can be quite financially rewarding. However, I would strongly recommend to anyone that they carefully and critically assess what is involved in terms of the capital required. As well as the ongoing operational requirements including WHS compliance, legal etc. These can easily be overlooked but could end up being the hidden landmines that can make, what would otherwise be a great venture, potentially come unstuck.

The good things is it’s now nearly 15 years later since l fist started and I’m still not tired of the industry! l