During a recent government meeting, Dan Lusk, a local storage facility owner and former board member of the Arkansas Self Storage Association, voiced strong opposition to a proposed new storage facility in Little Rock's Riverdale area. Lusk argued that the area is already oversaturated with storage options, citing five existing facilities, three of which offer climate-controlled units. He expressed concern that the introduction of a new 91,000 square foot facility would exacerbate financial strain on current operators, including his own, which has seen declining occupancy and rental rates amid economic pressures.

Lusk highlighted that the Riverdale area has a storage capacity that far exceeds the national average, with some parts of Little Rock reaching a staggering 20 storage units per capita. He questioned the feasibility of the new facility, suggesting that the applicant may not have conducted a thorough market analysis to justify the claim of an underserved area. He emphasized the importance of understanding local demographics and the impact of geographical barriers, such as the nearby river, which could limit customer access.

The economic climate was a recurring theme in Lusk's remarks, as he noted rising costs for insurance and property taxes, which have forced many storage operators to lower their rates. He referenced a recent New York Times article discussing a nationwide cooling demand for self-storage, indicating that many facilities are struggling to maintain occupancy and some have even been abandoned.

Lusk concluded by expressing skepticism about the appropriateness of a large storage facility in a retail shopping center, suggesting that the area may not be the right fit for such a development. His comments reflect broader concerns about the sustainability of the self-storage market in the current economic environment and the potential consequences for existing businesses in the community.