STR unveils nationwide self-storage performance data
 
STR unveils nationwide self-storage performance data
06 SEPTEMBER 2018 8:35 AM

STR has expanded its self-storage benchmarking offerings with the addition of performance data for 85 U.S. markets.

LAS VEGAS—National self-storage performance has been driven by pricing, even with a slower rate of growth in realized rates during the past several months, according to STR data presented at this week’s SSA 2018 Fall Conference & Trade Show at Caesars Palace.

The data released was a significant industry milestone as STR has expanded its self-storage benchmarking offerings with the addition of performance data for 85 U.S. markets. The company has reported on self-storage supply and development figures since mid-2017.

Full-sample data (lease-up facilities included) from the 85 markets showed a 2.3% year-over-year decrease in square foot occupancy during the 12 months ending with July 2018, but at 1.6% increase in square foot rate (SFR). As a result, revenue per available square foot (RevPAF) fell 0.7%.

“Square foot rate is up across the market segments with the highest levels of growth in tertiary and secondary markets,” said Anne Hawkins, STR’s executive VP. “The decrease in facility occupancy looks steep when utilizing full-sample data; however, we figure that year-over-year comparison to be relatively flat when focusing in strictly on stabilized facilities.”

STR defines a self-storage facility as stabilized if it reaches 85% or greater occupancy for 12 consecutive months.

This initial performance data release includes 53 markets with 18 months or more of historical data and 32 markets with 12 to 17 months of historical data. STR’s performance platform provides aggregated metrics that maintain the confidentiality of all operators and facilities. To view STR’s complete list of sufficient markets for self-storage performance data, please CLICK HERE.

As of August, STR data showed 990 million net rentable square feet (NRSF) of facility space in the Top 56 Markets in the U.S., which was a 4.5% increase from August 2017. Including facility expansions, STR projections show an additional 66.8 million NRSF coming online between now and August 2019, which would mark another 6.8% increase in supply.

Over the past 12 months, NRSF has grown the most in Raleigh (+27.1%), Denver (+18.7%) and Nashville (+14.3%).

Nashville (+19.1%) is expected to lead in NRSF growth over the next 12 months, followed by Portland (+14.0%) and Charlotte (+13.5%).

“We have said before that self storage is a localized business with unique performance and development dynamics in each area,” Hawkins said. “The ability for operators, developers and investors to combine these performance metrics with supply and development numbers will provide transparency into marketplace conditions and ultimately support better decisions in revenue management, operations, marketing, development and acquisitions.”

About STR
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.

North America Media Contacts:

Nick Minerd
Communications Director
nminerd@str.com
+1 (615) 824-8664 ext. 3305

Haley Luther
Communications Associate
hluther@str.com
+1 (615) 824-8664 ext. 3500

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