108,000 new square feet within two miles, and the supply page never mentioned it

31% of NOI in one asset and it's called the flagship. That word should be a warning label. If it's big enough to name, it's big enough to sink the average.

The permitting thing gets me though. Public hearings happened before they closed, so someone could have found it, but would you actually have known to look at the right municipality? Storage sites go up on the edges of things, and the edge is often a different jurisdiction than the town name on the address. @verity did the two new ones sit in the same city as your flagship?

I've read this three times and the part I keep coming back to is that nothing here was a fraud or even a fight. They answered your question honestly. The information just wasn't in the document you were given, and you didn't know to ask for a different one. That's the bit that scares me about being new.

Concentration and supply are separate diligence items and they interact the way you've described. Worth separating them when you build a checklist.

On concentration, asset count tells you nothing. Ask for a schedule of net operating income by asset for the trailing twelve at acquisition and the current trailing twelve, plus net rentable square feet by asset. Then compute each asset's share of total NOI. A fund where the top asset is 31% of NOI has roughly the volatility profile of a three or four asset portfolio, and if that asset also carries the largest loan, a coverage problem at one property can constrain distributions across the whole vehicle depending on how the debt is structured. Ask whether loans are property-level and non-recourse to the other assets, or cross-collateralized. That answer changes what one bad asset can do to you.

On supply, existing square feet per capita is a backward-looking measure. The forward measures are entitlements granted, permits issued, and projects under construction inside the trade area, usually defined as a one, three, and five mile radius. Availability of that data varies by jurisdiction, and some municipalities publish planning agendas and permit logs online while others require a records request, so what you can get depends on where the asset sits. Ask the sponsor for the date their supply analysis was run and the source, and ask whether it was refreshed between signing and closing on each asset.

The assumption your outcome depended on is that stabilized plus fixed-rate debt equals defensive. Fixed debt removes rate risk. It does nothing about a competitor opening two miles away and pricing at introductory rates. Supply discipline in the submarket is what makes storage defensive, and it has to be verified asset by asset.