A Note from the Founder 6.30.2025

Zachary Urow August 12, 2025

Core Inflation Rate Rose to 2.7% in May

  • Core consumer prices increase 0.2% in May. This pushed the annual inflation rate to 2.7%, which remains above the Federal Reserve’s 2% target.
  • Real personal spending declined 0.3% and personal income fell 0.4% due to the expiration of temporary Social Security payment boosts.
  • Fed officials continue to debate the timing of interest rate cuts, as markets currently anticipate easing to begin in September amid economic uncertainties.

Remote Self-Storage Management Grows in 2025

  • Facility owners are increasingly managing operations remotely using smart locks, cloud platforms, and automation to improve efficiency without on-site staff.
  • Hybrid models combining part-time on-site presence with digital tools are gaining popularity for balancing customer service and operational costs.
  • Strong communication channels and proactive maintenance remain essential across all management styles to ensure security and customer satisfaction.

Our Thoughts

  • The slight increase in core inflation could drive up operational costs and decrease net operating income unless rental rates adjust accordingly. Owners should prepare for potential cost inflation while evaluating pricing strategies carefully.
  • Adopting remote and hybrid management systems is increasingly important for optimizing staffing efficiency and security. Investments in these technologies help maintain a competitive edge and ensure tenant satisfaction.