Self Storage Performance Quarterly Q1 2018

Self Storage Performance Quarterly

April 2018

Dear Subscriber, Rental income increased Nationwide, while asking rental rates held. Physical occupancy increased in the first quarter of the yearly cycle Nationwide. The increase in rental income is particularly important because it demonstrates that revenue enhancement models lowered rents on income in place Nationwide. This can further be demonstrated in the “National” graph of actual rent with slight decrease in the last two quarter values. Supply and demand metrics appear to be slightly slowing this quarter, but still positive for the year. Construction starts decreased 41% from last quarter and was up 45% as of 1Q17. According to F.W. Dodge, there have been 499 new starts the last four quarters (new starts includes new construction and alterations, additions, or renovations) which is an all-time high.

National Actual Rent Per SQFT (10x10 Analysis)

1.60

1.50

1.40

1.30

1.20

1.10

1.00

0.90

0.80

Climate Ground

Climate - Upper Level

Non-Climate Ground

Non-Climate - Upper Level

Source: Cushman &Wakefield, Inc. The Self Storage Performance Quarterly , a publication of Cushman & Wakefield, Inc., is intended solely for use by paid subscribers. Reproduction or distribution in whole or part without written permission is prohibited and subject to legal action. Copyright ® 2018.

Cushman & Wakefield | Valuation & Advisory

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