Metro Areas • Section 8
percent), while the occupancy for smaller operators remained flat with no increase.
In terms of a drop in occupancy, both
groups saw a decrease in the third and fourth quarters of both 2013 and 2014. In addition, smaller operators also saw another 0.2 percent drop in the first quarter of 2015. The seasonality of self-storage may be a contributing factor to this trend.
Tables 8.17 and 8.18 compare the cli-
mate-controlled and non-climate-con- trolled rental rates for both operating groups. When comparing the data, Table 8.18 indicates that the REITs and large op- erators get a premium of approximately $30 for climate-controlled units. The same pricing trend is true for smaller operators. In addition, similar to occupancy rates, the larger operators consistently show higher rental rates for both types of units than the smaller operators.
Within both groups, the data indicates
fluctuation in overall climate-controlled 10-by-10 unit pricing over the 10 reported quarters. However, both show that the low- est rates were in Q1 2013 with the highest rates reported in the second quarter of 2015. Interestingly, both the large and small operators reported a drop in pricing for the fourth quarter of both 2013 and 2013. As seen in Table 8.17, the large operators took a steeper cut in both quarters (1.4 percent and 1.6 percent), with the smaller operators showing a decrease of only 0.5 percent and 0.4 percent.
For non-climate-controlled units, the
REITs and large operators saw the same 4Q 2013 and 4Q 2014 drop in rates that was evidenced for climate-controlled units. In contrast, while smaller operators saw a slight drop in Q4 2013 (0.2 percent). They did not see the decrease in fourth quarter 2014 rates. Moreover, the drop in 2013 was slightly less than the drop for climate-con- trolled units during the same time period.
For operators of all sizes, it is imperative
to track the rental rates of all unit types in the surrounding market area. This is dis- cussed in detail in Section 7.
Year
Table 8.16 – National Occupancy Comparison Large Operators Vs. Small Operators (50 Metros) Change in
Occupancy Rate Occupancy Rate
2013 1 86.1% 2013 2 88.7% 2013 3 88.2% 2013 4 87.2% 2014 1 87.4% 2014 2 90.0% 2014 3 89.4% 2014 4 88.7% 2015 1 89.2% 2015 2 91.3%
* Data Not Available
Occupancy Rate
(Large Operators: (Large Operators: (Smaller
Quarter REITs + LOCs) REITs + LOCs) Operators) *
2.6% -0.5% -1.0% 0.2% 2.6% -0.6% -0.7% 0.5% 2.1%
84.2% 86.6% 86.3% 85.5% 85.5% 87.9% 87.7% 87.1% 86.9% 88.7%
Change in
Occupancy Rate (Smaller
Operators) *
2.4% -0.3% -0.8% 0.0% 2.4% -0.2% -0.6% -0.2% 1.8%
Source: © 2015 REIS, INC.
Table 8.17 – National Climate-Controlled Rental Rate Comparison Large Operators Vs. Small Operators (Top 50 Metros)
Climate-
Change in Climate-
Asking Rent * (Large Operators: (Large Operators:
2013 2 $151.14 2013 3 $152.82 2013 4 $150.65 2014 1 $153.35 2014 2 $158.82 2014 3 $159.65 2014 4 $157.09 2015 1 $160.40 2015 2 $168.03
* Data Not Available
1.4% 1.1% -1.4% 1.8% 3.6% 0.5% -1.6% 2.1% 4.8%
Climate-
Asking Rent (Smaller
$133.45 $135.09 $136.07 $135.40 $137.16 $140.11 $140.26 $139.63 $141.44 $144.28
Year Quarter REITs + LOCs) REITs + LOCs) Operators) 2013 1 $149.11
Change in Climate-
Controlled 10x10 Controlled 10x10 Controlled 10x10 Controlled 10x10 Asking Rent
Asking Rent (Smaller
Operators) *
1.2% 0.7% -0.5% 1.3% 2.2% 0.1% -0.4% 1.3% 2.0%
Source: © 2015 REIS, INC.
Table 8.18 – National Non-Climate-Controlled Rental Rate Comparison Large Operators Vs. Small Operators (Top 50 Metros)
Change in Non-Climate-
Controlled 10x10 Controlled 10x10 Controlled 10x10 Controlled 10x10 Asking Rent
Non-Climate- Asking Rent
(Large Operators: (Large Operators: *
2013 2 $121.71 2013 3 $122.98 2013 4 $121.41 2014 1 $123.82 2014 2 $128.07 2014 3 $128.99 2014 4 $126.59 2015 1 $130.04 2015 2 $136.21
* Data Not Available
1.5% 1.0% -1.3% 2.0% 3.4% 0.7% -1.9% 2.7% 4.7%
Non-Climate- Asking Rent
(Smaller
Year Quarter REITs + LOCs) REITs + LOCs) Operators) 2013 1 $119.86
$104.23 $104.60 $105.74 $105.51 $106.63 $108.55 $108.90 $108.98 $110.44 $112.59
Non-Climate- Asking Rent Operators)
(Smaller *
0.4% 1.1% -0.2% 1.1% 1.8% 0.3% 0.1% 1.3% 1.9%
Source: © 2015 REIS, INC. 2016 Self-Storage Almanac 103 Change in
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