Self Storage Performance Quarterly Q2 2017

Self Storage Performance Quarterly

Demand Methodology – SSDS tracks the rental activity of 306,000 ± self-storage units found in approximately 516 self-storage facilities every 30-days. To measure the changes in demand, SSDS tracks several indicators including: the Ratio of Move-Ins to Move-Outs, the Net Absorption of Units and the changes in total facility’s Potential Gross Income. Ratio of Move-Ins : Move-Outs – The red line in the graph below illustrates the trend in the ratio of tenants moving into storage as opposed to those moving out of storage. At the peak of the season, typically in May and June, the percentage of tenants moving into storage approaches 60% of the total rental activity. Net Absorption Ratio – Another measure of demand is to measure the net difference in the ratios of move- ins to move-outs which is calculated as follows: Our findings are reported monthly to subscribers and are summarized in the following tables and graphs.

Demand Trend Ratio of Move-Ins : Move Outs (Same-Store Sample - 510 ± Facilities Nationwide)

65%

60%

55%

50%

45%

40%

35%

Move-Outs

Move-Ins

Move-ins

-

Move outs

= Net Absorption Ratio

Total Rental Activity

Total Rental Activity

Total Rental Activity is the sum of move-ins and move-outs in a given time period. When the ratio is positive it is indicative of positive net absorption. The size of the Net Absorption Ratio reflects the gap or differential between move-ins and move-outs.

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® 2017

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