Self Storage Performance Quarterly Q2 2017

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July 2017

Dear Subscriber,

Rental income and asking rental rates Nationwide increased. Physical occupancy increased, which is expected in the second quarter of the yearly cycle. The increase in rental income is particularly important, because it demonstrates that revenue enhancement models continue to raise rents on income in place Nationwide. This can further be demonstrated in the “National” graph of actual rent with slight decrease in second quarter values. Supply and demand metrics appear to be moving. Construction starts increased 65% from last quarter, and was up 133% as of 2Q16. According to F.W. Dodge, there have been 391 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® 2017

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