Self Storage Performance Quarterly - Q2 2018

Self Storage Performance Quarterly

June 2018

Dear Subscriber, Rental income increased Nationwide, while asking rental rates decreased slightly. Physical occupancy increased in the second 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 growing this quarter, and still positive for the year. Construction starts increased 8% from last quarter and was down 5% as of 2Q17. According to F.W. Dodge, there have been 493 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

Non-Climate Ground

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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