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Risks
1. Interest Rate Risk: CubeSmart’s business operations are largely driven by fluctuations in interest rates, which can affect rent revenue and occupancy rates granted to tenants.
2. Competition Risk: CubeSmart faces increased competition from other large storage companies, as well as online storage facilities seeking to gain market share.
3. Geographic Risk: CubeSmart is exposed to the possibility of economic downturn in certain markets that may affect the performance of their existing and prospective properties.
4. Regulatory Risk: Changes in government regulations could adversely affect CubeSmart’s operations, such as changes to carbon emissions regulations or stricter zoning laws.
5. Technology Risk: CubeSmart must remain on the cutting edge of technology to stay competitive, and rapid changes in technology could hamper their efforts or open them up to cyber security threats.