Self Storage Performance Quarterly Q4 2019

Self Storage Performance Quarterly

January 2020

Dear Subscriber,

Rental income decreased Nationwide, while asking rental rates also decreased. Physical occupancy increased sligthly in fourth quarter of the yearly cycle Nationwide. The decrease in rental income is particularly important because it demonstrates that revenue enhancement models increased rents on units in place Nationwide. This can further be demonstrated in the “National” graph of actual rent. Supply and demand metrics appear to be slightly growing this quarter, and positive for the year. Construction starts increased 15% from last quarter and increased 31% as of 4Q18. According to F.W. Dodge, there have been 465 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® 2020.

Cushman & Wakefield | Valuation & Advisory

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