Section 4 • Occupancy
self-storage stores may be inadvertently leaving money on the table either by chagrining tenants below market rates or by be- ing forced to turn away potential new customers for lack of stor- age stock—some of whom would likely pay more for the space than the unit’s current occupant. This creates a situation where
Table 4.2 –
Change in National Occupancy 2012 to 2014 (By Quarter)
Year Quarter Occupancy
2012 Q1 82.3% 2012 Q2 85.0% 2012 Q3 85.8% 2012 Q4 85.1% 2013 Q1 85.3% 2013 Q2 87.8% 2013 Q3 87.4% 2013 Q4 86.5% 2014 Q1 86.6% 2014 Q2 89.1% Source: © 2014 REIS, INC.
% Change 0.2%
2.7% 0.8% -0.7% 0.2% 2.5% -0.4% -0.9% 0.1% 2.5%
Going region by region, self-storage stores
in the Midwest realized the biggest occupancy gains of the past 12 months.
only topped by the national average reported in 1994 when oc- cupancy levels swelled to an average of 89.9 percent. Looking at the data by quarters shows an impressive gain of almost 3 percent between the first and second quarters of the year. After some small occupancy rate dips during the second half of 2013, the metric appears to be continuing along an upward trend for 2014.
Chart 4.1 – National Occupancy Rates 2011 - 2014 (By Quarter)
70% 80% 90%
60% 50% 40% 30% 20% 10% 0
Every region of the county has its own prime and off seasons for self-storage rentals. Depending on the area in which they oper- ate, some self-storage stores may experience a seasonal ebb and flow of customers as ten- ants avoid during some tasks during times of inclement weather or spend the winter or summer months away from home in order to avoid extreme weather conditions. Regard- less of the time of year, when examining oc- cupancy rates is important to remember that self-storage can be very cyclical in nature with high points and low points expected in different areas of the nation during different calendar months of the year.
Q4 2011
2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Source: © 2014 REIS, INC. Q2
Regional Occupancy Growth Going region by region, self-storage stores in the Midwest realized the biggest occupancy gains of the past 12 months. After several
Chart 4.2 – Physical Occupancy by Region 90.5%
89.5% 90%
89% 88.5% 88% 87.5% 87% Midwest Northeast
*2nd Quarter 2014 60 Self-Storage Almanac 2015
quarters of marginal and negative occupancy growth, rates in this part of nation rose 2.7 percent to reach 89.8 percent during the second quarter of 2014. Currently, the occupancy level for this region of the country is at a high point for the 11 quarters analyzed. While all regions posted large gains for the one-year period,
occupancy was most stable in the Northeastern U.S., rising only 2.2 percent during Q1 and Q2 2014. The occupancy growth brings the region’s overall occupancy level to 89.8 percent— another peak in occupancy levels for the 33-month period. Facilities in the Southwest posted occupancy rates in excess
South Atlantic
Southwest West National Source: © 2014 REIS, INC.
of 90 percent for the year, making self-storage stores in this re- gion the most tightly occupied in the nation. Although the occu- pancy rate grew only 2.4 percent overall, owners and operators
the facility cannot take on new tenants or fully meet the needs of the community in which it operates. Coming close to that target physical occupancy number,
the average occupancy rate of all self-storage properties in the nation was 89.1 percent in 2014. The second highest reported average rate over the last 17 years, the occupancy figure was
Occupancy
Occupancy
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