Industry Ownership • Section 2


companies. The top 10 self-storage operators also have a larg- er market share based on square feet than on the number of facilities operated. This exemplifies a trend that the larger op- erators are exhibiting. They are moving to larger, more densely populated MSAs and are building more square-feet-per-facility than the average operator. This is a result of the stronger em- phasis that institutional investors place on larger markets and higher returns.


Summing It Up Looking at the big picture, demand for self-storage is high and supply is low, resulting in higher rental rates and occupancies. Given this, the industry is attracting the attention of Wall Street, private equity funds, off-shore investors, and developers from other real estate sectors. Therefore, it is imperative that we ap- proach growth cautiously with careful due diligence in order to avoid the overbuilding we experienced in the mid-2000s.


Chart 2.4 – Market Share by Number of Facilities 25% 20% 16.53% 14.96% 15% 10% 5.95% 5% 0%


Market Share of Top Operator


Market Share of Top 10 Operators Market Share of Top 25 Operators Market Share of Top 50 Operators Market Share of Top 100 Operators Source: NGKF Capital Markets, Yahoo! Finance Chart 2.5 – Market Share by Rentable Square Feet


0% 5% 10% 15% 20% 25% 30% 35%


28.74% 26.48% 23.54% 20.52% 18.95% 17.72%


7.29%


Market Share of Top Operator


Market Share of Top 10 Operators


Market Share of Top 25 Operators


Market Share of Top 50 Operators


Market Share of Top 100 Operators Source: NGKF Capital Markets, Yahoo! Finance 2016 Self-Storage Almanac 35


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