Self Storage Performance Quarterly Q2 2016

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July 2016

Dear Subscriber, Significant gains continue in rental income and asking rents, as physical occupancy remains stable with a slight increase in REIT activity which is expected in the Second Quarter. The increase in rental income is particularly important, because it demonstrates revenue enhancement models continue to raise rents on income in place. This can further be demonstrated in the “National” graph of actual rent with steady second quarter values. Supply and demand metrics appear to be stable. Construction starts decreased 6% from last quarter, and was up 4% as of 2Q15. According to F.W. Dodge, there have been 209 new starts the last four quarters (new starts includes new construction and alterations, additions, or renovations).

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® 2016

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