Question you: What is your genetal assessment of Shurgard’s business? How has it performed, to date, in the US?
Before performing any in depth valuation examination, do you expect Shurgard to succeed in Europe? Each of our assessment of Shurgard’s business is that it is just a company which has taken good thing about every single option it has got. We consider them visionaries in the business of the self-storage.
Comprehensive they have built such a “self-storage empire”. Firstly in the US and then in Europe, they have grown using a model which is really worthwhile. In the US Shurgard manages a network of two, 000 storage facilities around the world to date, many of which are been able for businesses. The company’s facilities happen to be spread through 38 claims. The performance of the business started in 72, when Charles Barbo founded Shurgard in Seattle.
It operates being a self-storage supervision company that provides a variety of storage units for equally households and businesses in buildings specifically designed for this purpose. By the end of the 1972s Shurgard had 25 storage facilities inside the Seattle, Washington area. Through the next years, the US self-storage facilities advanced and Shurgard was rapidly competing not only with person mom-and-pop employees but greater corporations such as Public Storage area, U-Haul and Storage USA.
It was an easy business model having a very low repair and very high margins. In the 1980s, to tell apart it do it yourself from rivals, Shurgard created a new architectural feature for example a lighthouse structure in which the manager’s office was located. By simply 1988, the organization had 75 facilities through the US.
Above the next 10 years the business enterprise grew, through 1999, Shurgard managed 348 storage homes located in 20 states. Nowadays it deals with over 2, 000 storages throughout 32 states. The main reason why we think Shurgard succeed in The european union is that self-storage is a new company to explore and develop in Europe. While Dave Scholarhip said, “There are 300 million persons in the US and Canada served by a lot more than 25, 1000 storage services. In The european union, there five-hundred million people served by fewer than two hundred facilities”.
European countries exhibits a similar self-storage basic principles that prevail in the US, which include very stable performance characteristics, low break-even guests, low risk cost composition, steady leasing rate development, low capital expenditure requirements and low functional obsolescence. The possibilities to expand the business enterprise to European countries are interesting and realistic, so the do well of Shurgard in this marketplace is a fact more than likely.