While self-storage remains our bread and butter, SmartStop will also acquire more student housing and will seek to enter the senior-housing sector. Both student and senior housing properties are in sectors with excellent long-term demographics.

Our goal is to grow our organization wisely through prudent acquisitions. We will make sure that we have the right people—quality and quantity—to run our organization. Any time that you are in a growth mode, as we have been over the past two years and expect to continue to be, you must stay ahead of the curve by hiring the right people at the right time with the right skills and competencies.

GlobeSt.com: How do you feel the self-storage industry is changing at this point in the real estate cycle?

McClure: Self-storage has been outperforming almost all other real estate sectors over the last five to 10 years. As a result, it has become a better-known asset class that has recently attracted more capital, consequently driving up prices and causing cap rates to compress. There is a larger amount of money chasing available deals, a clear change that has occurred during the last 12 to 18 months. Like any real estate cycle, this too will change.

GlobeSt.com: What other trends are you noticing in the sector?

McClure: In addition to the increase in capital, a significant amount of new construction is underway. Although there hasn't been much new ground development for the past three to four years, much is coming online and effectively resulting in more supply. Its impact will vary market to market. SmartStop will continue to be disciplined in our buying approach, with the change in pricing and the need to be cognizant of potential future development. We will continue to focus on areas that have strong demographics – locations near rooftops, higher-income levels and similar traits. As always, we will continue to focus on properties that are under-managed. We believe we can take an existing, undermanaged property and increase its profitability under our property-management umbrella.

Self-storage is currently going through a lot of changes, but we've been buying it for the past 15 years, through all kinds of different cycles and buying opportunities. We remain opportunistic and disciplined in our approach.

GlobeSt.com: What else should our readers know about the leadership change at your company?

McClure: I've been with SmartStop for nine years, and most of our executive team has been here during that same time. We've had excellent continuity in our leadership team. Our CEO, Michael Schwartz, will continue to be involved in all aspects of our business. He is our strategic visionary. My new role as president will allow our executive team to take more of the day-to-day approach in running operations and enable Mr. Schwartz to focus on what he does best: creating new business strategies, enhancing shareholder value and developing strategic relationships.

LADERA RANCH, CA—The self-storage sector has become a better-known asset class that has recently attracted more capital, consequently driving up prices and causing cap rates to compress, SmartStop Asset Management LLC's Michael McClure tells GlobeSt.com. McClure was recently appointed by the firm's board to serve as the company's president, in addition to president of its various affiliates including Strategic Storage Trust II Inc., Strategic Storage Growth Trust Inc., Strategic Storage Trust IV Inc. and Strategic Student Senior and Storage Trust Inc. He replaces H. Michael Schwartz, who continues in his capacity as chief executive officer.

We spoke with McClure about his new role with the firm and trends in the self-storage sector.

GlobeSt.com: What are your goals in your new role at SmartStop and Strategic?

McClure: SmartStop Asset Management is a diversified real estate company that has grown tremendously over the past two years and now has more than $1 billion in assets under management. Our portfolio currently includes self-storage and student housing properties, as well as a sports complex. Our mission here is to increase shareholder value. The question is, how do we do that? We try to acquire real estate with strong demographics in high-growth areas, as well as real estate that we believe we can add value to, which is frequently done by implementing property-management expertise. In student housing, strong demographics will typically include properties that are on- or near campus.

While self-storage remains our bread and butter, SmartStop will also acquire more student housing and will seek to enter the senior-housing sector. Both student and senior housing properties are in sectors with excellent long-term demographics.

Our goal is to grow our organization wisely through prudent acquisitions. We will make sure that we have the right people—quality and quantity—to run our organization. Any time that you are in a growth mode, as we have been over the past two years and expect to continue to be, you must stay ahead of the curve by hiring the right people at the right time with the right skills and competencies.

GlobeSt.com: How do you feel the self-storage industry is changing at this point in the real estate cycle?

McClure: Self-storage has been outperforming almost all other real estate sectors over the last five to 10 years. As a result, it has become a better-known asset class that has recently attracted more capital, consequently driving up prices and causing cap rates to compress. There is a larger amount of money chasing available deals, a clear change that has occurred during the last 12 to 18 months. Like any real estate cycle, this too will change.

GlobeSt.com: What other trends are you noticing in the sector?

McClure: In addition to the increase in capital, a significant amount of new construction is underway. Although there hasn't been much new ground development for the past three to four years, much is coming online and effectively resulting in more supply. Its impact will vary market to market. SmartStop will continue to be disciplined in our buying approach, with the change in pricing and the need to be cognizant of potential future development. We will continue to focus on areas that have strong demographics – locations near rooftops, higher-income levels and similar traits. As always, we will continue to focus on properties that are under-managed. We believe we can take an existing, undermanaged property and increase its profitability under our property-management umbrella.

Self-storage is currently going through a lot of changes, but we've been buying it for the past 15 years, through all kinds of different cycles and buying opportunities. We remain opportunistic and disciplined in our approach.

GlobeSt.com: What else should our readers know about the leadership change at your company?

McClure: I've been with SmartStop for nine years, and most of our executive team has been here during that same time. We've had excellent continuity in our leadership team. Our CEO, Michael Schwartz, will continue to be involved in all aspects of our business. He is our strategic visionary. My new role as president will allow our executive team to take more of the day-to-day approach in running operations and enable Mr. Schwartz to focus on what he does best: creating new business strategies, enhancing shareholder value and developing strategic relationships.