Jernigan: Metros need $25B worth of storage facilities

by Alexandar Harris, The SpareFoot Storage Beat – MAY 29, 2015 For years, construction of self-storage facilities in the U.S. has lagged population growth. The gap is so wide, in fact, that industry veteran Dean Jernigan says about $25 billion worth of storage facilities needs to be built in major metro markets for the industry to catch up and keep up with population growth. Developers should build 3,450 facilities over the next five years in the 50 largest metro areas to erase the facility deficit and keep pace with future population growth, Jernigan, chairman and CEO of publicly traded self-storage lending firm Jernigan Capital, told The SpareFoot Storage Beat. According to Jernigan’s estimates, about 150 facilities will be completed this year and up to 400 next year. The projected need for 3,450 facilities breaks down this way: 1,575 facilities to meet pent-up demand for facilities that didn’t get built. From 2010 to 2014, only 300 facilities were built in the 50 largest metro areas. Jernigan said 375 facilities should have been built in the those areas each year to match population growth. That pent-up demand explains the industry is “seeing tremendous occupancy, rent growth and terrific top-line revenue growth from the public companies,” Jernigan said. “We can’t possibly ramp up quickly enough as a sector to build enough storage to make up for what should have been built.” 1,875 facilities to account for future population growth. Jernigan said the industry is the early stages of an extended development cycle that could last up to seven years. Because most developers sat on the sidelines during the past several years, there’s...

Jernigan Capital, Inc. Announces Selection of John A. Good as President and Chief Operating Officer

MIAMI – MAY 27, 2015 – Jernigan Capital, Inc. (NYSE: JCAP) (the “Company”) today announced that its board of directors has selected John A. Good to become its President and Chief Operating Officer. Good is currently a corporate and securities partner and co-head of the REIT practice group at Morrison & Foerster LLP, a global law firm, where he has served since October 2013. From May 1999 until October 2013, Good was a corporate and securities partner and head of the REIT practice at Bass, Berry & Sims PLC, and was a shareholder at Baker Donelson Bearman Caldwell and Berkowitz from 1994 through 1999, serving as head of the firm’s securities and M&A practice group at the time of his departure. He has been a trusted legal and business adviser to REIT senior management teams and boards of directors since 1997, serving clients such as RFS Hotel Investors, Inc., Mid-America Apartment Communities, Inc. (NYSE: MAA), Storage USA, Inc., CubeSmart (NYSE: CUBE), Education Realty Trust, Inc. (NYSE: EDR), Quadra Realty Trust, AmREIT, Inc., Whitestone REIT (NYSE: WSR), Trade Street Residential, Inc. (NASDAQ: TSRE) and Farmland Partners, Inc. (NYSEMKT: FPI). Good graduated from the University of Memphis with a BBA in Accounting in 1980, practiced as a certified public accountant at a large regional accounting firm for nearly 5 years and graduated from the University of Memphis law school with honors in 1987. View the Jernigan Capital...