Market Conditions • Section 13
age industry moved through 2015 at a velocity that continued to outpace every other type of investment real estate at al- most every measurable metric. From the public equity market, the industry outper- formed the entire REIT universe on total return. It is also interesting to note that total return performance on a five-year hold, as well as a 10-year hold, also was led by the self-storage sector.
O In addition to the financial per-
formance in the public markets, the industry operated at all-time high occu- pancies throughout 2015 and rent growth was broadly reported to be stouter than in any previous year. This coincided with the macro trend of concessions be- ing all but eliminated; with the exception of the popular “first month free” market- ing program.
The broad-based positive results also
have increased the number of lenders comfortable with, and understanding of, the product type, which has led to a deep pool of debt capital deploying into the space. And following the lenders’ lead of increasing comfort with the product type also has welcomed a considerable amount of joint-venture equity into the industry—into both existing properties and portfolios, as well as into develop- ment programs.
It will always be the case that the lo-
cal sub-market around any given site will provide most of the relevant data points. However, the context provided by com- paring a given site or a given market to the industry overall can reveal underlying strengths and weaknesses that otherwise could be ignored. Especially relevant are the overall trends within datasets as well as comparative sets such as smaller mar- kets vs. major markets or population cen- ters vs. more rural markets. While rental rates or supply per capita in one market might mean very little to a specific site in another market, the trends and character- istics of the comparisons are extremely relevant.
n the heels of consecutive, year- over-year, all-time high operating performance results, the self-stor-
Table 13.1 – Total Self-Storage Facilities by State Number
Rentable State
Alabama Alaska Arizona
Arkansas California Colorado
Connecticut Delaware
District of Columbia Florida Georgia Hawaii Idaho Illinois
Indiana Iowa
Kansas
Kentucky Louisiana Maine
Maryland
Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada
New Hampshire New Jersey New Mexico New York
North Carolina North Dakota Ohio
Oklahoma Oregon
Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah
Vermont Virginia
Washington West Virginia Wisconsin Wyoming National
132 800 614
3,812 880 302 105 16
2,538 1,422 86
363
1,371 954 458 542 596 839 219 529 509
1,303 650 521
1,042 348 290 426 183 652 423
1,188 1,595 120
1,563 795 717
1,351 74
727 168
1,074 4,136 454 127 991
1,176 271 906 167
41,443
47,736,000 6,864,000 41,600,000 31,928,000 198,224,000 45,760,000 15,704,000 5,460,000 832,000
4,907,303 741,123
6,720,515 3,013,667 38,371,836 5,299,260 3,610,945 936,924 636,737
131,976,000 73,944,000 4,472,000 18,876,000 71,292,000 49,608,000 23,816,000 28,184,000 30,992,000 43,628,000 11,388,000 27,508,000 26,468,000 67,756,000 33,800,000 27,092,000 54,184,000 18,096,000 15,080,000 22,152,000 9,516,000 33,904,000 21,996,000 61,776,000 82,940,000 6,240,000 81,276,000 41,340,000 37,284,000 70,252,000 3,848,000 37,804,000 8,736,000 55,848,000 215,072,000 23,608,000 6,604,000 51,532,000 61,152,000 14,092,000 47,112,000 8,684,000
19,603,934 10,044,421 1,409,216 1,647,012 12,917,613 6,618,521 3,128,649 2,922,110 4,439,478 4,713,731 1,353,690 5,949,980 6,689,353 9,870,786 5,442,213 3,027,530 6,092,320 1,027,698 1,890,797 2,865,218 1,345,926 8,918,440 2,105,290 19,704,032 10,014,449 750,438
11,610,194 3,923,568 3,953,654 12,840,278 1,053,528 4,831,451 854,685
6,585,731 26,964,627 2,953,329 637,849
8,340,501 7,028,203 1,893,922 5,742,139 591,625
2,155,036,000 318,536,439 Square Footage
of Facilites Square Footage Population Per Person 918
9.73 9.26 6.19
10.59 5.17 8.64 4.35 5.83 1.31 6.73 7.36 3.17
11.46 5.52 7.50 7.61 9.65 6.98 9.26 8.41 4.62 3.96 6.86 6.21 8.95 8.89
17.61 7.98 7.73 7.07 3.80
10.45 3.14 8.28 8.32 7.00
10.54 9.43 5.47 3.65 7.82
10.22 8.48 7.98 7.99
10.35 6.18 8.70 7.44 8.20
14.68 6.77
2016 Self-Storage Almanac 133
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