A Note from the Founder 7.14.2025

Zachary Urow August 12, 2025

ISM Manufacturing PMI Signals Potential Construction Challenges

  • The ISM Manufacturing PMI fell to 49.0 in June, a sign of contraction in the manufacturing sector.
  • This decline reflects slower production of construction materials such as steel, concrete, and HVAC components used in self-storage development.
  • Reduced manufacturing output could lead to supply chain delays and increased costs for new self-storage facility builds and expansions.

Florida to Eliminate Commercial Lease Tax for Self-Storage

  • Florida Governor Ron DeSantis signed bill eliminating the state lease tax for commercial businesses, including self-storage facilities, effective October 1.
  • The law also prohibits local governments from imposing additional lease tax levies, but does not affect taxes on vehicle or boat storage in lots, garages, or marinas.
  • The Florida Self-Storage Association and the National Self-Storage Association supported the bill with the goal of improving the industry’s growth and stability.

Our Thoughts

  • The decline in manufacturing PMI signals potential delays and higher costs for construction materials, which could slow down new self-storage development and expansion projects.
  • The elimination of Florida’s commercial lease tax lowers expenses for self-storage owners. This change will increase profitability and enhance the appeal of Florida properties to investors.