Section 3 • Rental Rates
the national average for all sizes of climate controlled units in the second quarter of 2014. The South Atlantic region also had rental rates lower than the national average for all sizes of cli- mate controlled units except for its 10-by-20 units at $249.02, which was only slightly above the national average of $245.94. The second quarter 2014 data for non-climate controlled
units is very similar to that of climate controlled units. Once again, the Northeast posted the highest rental rates for all unit sizes and the Southwest had the lowest asking rates. However, the data for non-climate controlled units differs in regard to the West region. In the second quarter of 2014, both the Northeast and the West reported rental rates for non-climate controlled units that were higher than the national average. The highest rental rate reported was $242.97 for non-climate
controlled 10-by-20 units in the Northeast, which was $55.96 more than the national average of $187.01. On the opposite end of the price scale, the Midwest, Southwest, and South Atlantic regions posted rental rates below the national average. Non- climate controlled 5-by-5 units in the Southwest had the lowest rental rate with $40.09—a price that was $13.85 below the na- tional average and $22.74 less than the asking price of a 5-by-5 in the Northeast.
In addition, when looking at national rental rates by square
foot, the second quarter of 2014 commanded the highest prices. While climate controlled units have always had higher rental
rates to cover the associated costs, climate controlled units ex- perienced a 5 cent increase in rental rates per 100 square feet from first quarter 2014 to second quarter 2014. This is the larg- est increase listed since the fourth quarter of 2011—the usual increases range from zero to two cents per quarter. When comparing the cost per 100 square feet of climate
controlled versus non-climate controlled units, there is a price difference of $0.30 to $0.33. In the first quarter of 2014, climate controlled units were $0.31 more per 100 square feet than non- climate controlled units, but that price difference increased in the second quarter of 2014 to $0.33. Regional rental rates by square foot show that only one re-
gion—the Northeast—posted rental rates for climate controlled units that were above the national average for the second quar- ter of 2014. This region charged $1.90 per 100 square feet, $0.38 above the national average. Both the West and the Northeast reported rental rates for non-climate controlled units that were more than the national average of $1.19 per square foot in the second quarter of 2014, with $1.35 and $1.52, respectively. When discussing rental rates by square footage, we should
take the time to look at the size of the facilities’ operators. It has been said time and again that REITs and larger self-storage operators have the upper hand over smaller operators due to economies of scale and brand recognition. Although REITs and larger operators may have more recognizable brands, the mon-
Table 3.19a – National Comparison Multi-Story vs. Single-Story Rental Rates (50 Metros) Change in Non-Climate Change in Year Quarter
Occupancy Rate (Multi-Story Facilities)
2013 1 85.8% 2013 2 88.2% 2013 3 87.8% 2013 4 86.7% 2014 1 87.0% 2014 2 89.5%
Occupancy Rate (Multi-Story Facilities)
*
2.4% -0.4% -1.1% 0.3% 2.5%
Occupancy Rate
(Single-Story Facilities)
84.9% 87.5% 87.1% 86.4% 86.2% 88.8%
Change in
Occupancy Rate (Single-Story Facilities)
*
2.6% -0.4% -0.7% -0.2% 2.6%
Note: Multi-story facilities may include buildings which are single-story, but single-story facilities will not feature any units in multi-story buildings. * Data Not Available
Table 3.19b – National Comparison Multi-Story vs. Single-Story Rental Rates (50 Metros) Change in
Non-Climate Year Quarter
Controlled 10x10 Asking Rent (Single-Story Facilities)
2013 1 $97.43 2013 2 $98.48 2013 3 $99.63 2013 4 $98.74 2014 1 $100.10 2014 2 $102.94
Non-Climate
Controlled 10x10 Asking Rent (Single-Story Facilities)
*
1.1% 1.2% -0.9% 1.4% 2.8%
Climate
Controlled 10x10 Asking Rent (Multi-Story Facilities)
$152.47 $154.17 $155.68 $153.80 $156.69 $162.04
Change in Climate
Controlled 10x10 Asking Rent (Multi-Story Facilities)
1.1% 1.0% -1.2% 1.9% 3.4%
Note: Multi-story facilities may include buildings which are single-story, but single-story facilities will not feature any units in multi-story buildings. * Data Not Available 56 Self-Storage Almanac 2015
Climate
Controlled 10x10 Asking Rent (Single-Story Facilities)
$125.13 $127.38 $128.85 $127.71 $128.86 $132.07
Controlled 10x10 Asking Rent (Multi-Story Facilities)
$137.23 $138.41 $139.74 $138.70 $141.10 $144.94
Non-Climate
Controlled 10x10 Asking Rent (Multi-Story Facilities)
*
0.9% 1.0% -0.7% 1.7% 2.7%
Source: © 2014 REIS, INC.
Change in Climate
Controlled 10x10 Asking Rent (Single-Story Facilities)
*
1.8% 1.2% -0.9% 0.9% 2.5%
Source: © 2014 REIS, INC.
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