Section 4 • Rental Rates
the smallest rental rate increase from the first quarter of 2015 to the second quarter of 2015 with 3.8 percent.
Without a doubt, 2015 was a year for the
self-storage record books in terms of rental rates— and the future remains bright for the asset class since the industry’s momentum is expected to
continue over the next several years. For existing self-storage facilities, increasing rental rates will be a viable option until enough new supply comes on line to meet the current pent-up demand.
Change in Non-Climate- Year
2011 Q4 $45.91 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2
$45.93 $46.42 $46.81 $46.62 $47.13 $47.46 $47.42 $46.77 $47.34 $48.67 $48.48 $48.04 $48.92 $50.36
* Data Not Available Climate- Year
2011 Q4 $58.15 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2
$58.48 $59.29 $59.33 $58.78 $59.20 $59.94 $60.00 $58.92 $59.61 $61.51 $61.34 $60.53 $61.68 $64.32
* Data Not Available 56 Self-Storage Almanac 2016
Change in Climate-
*
0.6% 1.4% 0.1% -0.9% 0.7% 1.2% 0.1% -1.8% 1.2% 3.2% -0.3% -1.3% 1.9% 4.3%
Table 4.16 – South Atlantic Rental Rates (Climate-Controlled Asking Rent) Change in
Climate-
$86.21 $86.81 $87.89 $88.12 $87.46 $88.00 $88.73 $89.24 $87.85 $89.07 $91.92 $91.64 $90.42 $92.49 $96.38
Climate- *
0.7% 1.2% 0.3% -0.7% 0.6% 0.8% 0.6% -1.6% 1.4% 3.2% -0.3% -1.3% 2.3% 4.2%
Climate-
Asking Rent $137.57
$138.02 $139.62 $140.51 $140.13 $140.83 $142.19 $143.19 $141.29 $143.99 $148.58 $148.59 $146.97 $150.27 $156.57
Change in Climate-
Asking Rent *
0.3% 1.2% 0.6% -0.3% 0.5% 1.0% 0.7% -1.3% 1.9% 3.2% 0.0% -1.1% 2.2% 4.2%
Climate-
Asking Rent $182.62
$182.26 $184.17 $185.41 $185.19 $186.21 $187.83 $188.62 $186.42 $190.17 $196.11 $196.03 $194.18 $198.60 $206.78
Change in Climate-
Asking Rent *
-0.2% 1.0% 0.7% -0.1% 0.6% 0.9% 0.4% -1.2% 2.0% 3.1% 0.0% -0.9% 2.3% 4.1%
Climate-
Asking Rent $224.78
$225.86 $227.65 $229.40 $229.29 $231.33 $232.57 $233.75 $231.70 $236.19 $242.87 $242.43 $240.40 $245.64 $255.00
Non-Climate- *
0.0% 1.1% 0.8% -0.4% 1.1% 0.7% -0.1% -1.4% 1.2% 2.8% -0.4% -0.9% 1.8% 2.9%
Non-Climate-
$64.12 $64.71 $65.29 $66.04 $65.55 $66.18 $66.76 $66.98 $66.12 $66.80 $68.72 $68.69 $67.89 $69.29 $71.76
Non-Climate- *
0.9% 0.9% 1.1% -0.7% 1.0% 0.9% 0.3% -1.3% 1.0% 2.9% 0.0% -1.2% 2.1% 3.6%
Controlled 5x5 Controlled 5x5 Controlled 5x10 Controlled 5x10 Controlled 10x10 Controlled 10x10 Controlled 10x15 Controlled 10x15 Controlled 10x20 Controlled 10x20 Asking Rent Asking Rent Asking Rent Asking Rent
Non-Climate- Asking Rent
$102.22 $102.39 $103.24 $104.75 $104.43 $104.93 $105.56 $106.38 $104.94 $106.39 $109.45 $109.71 $108.63 $110.72 $114.78
Non-Climate- Asking Rent
*
0.2% 0.8% 1.5% -0.3% 0.5% 0.6% 0.8% -1.4% 1.4% 2.9% 0.2% -1.0% 1.9% 3.7%
Non-Climate- Asking Rent
$133.30 $133.46 $134.47 $136.06 $135.72 $136.49 $137.20 $137.67 $135.57 $137.74 $141.09 $141.45 $140.30 $143.16 $148.23
Non-Climate- Asking Rent
*
0.1% 0.8% 1.2% -0.2% 0.6% 0.5% 0.3% -1.5% 1.6% 2.4% 0.3% -0.8% 2.0% 3.5%
Non-Climate- Asking Rent
$162.27 $162.15 $164.21 $166.19 $166.60 $167.52 $169.51 $169.94 $168.17 $170.43 $174.53 $174.87 $173.67 $176.83 $183.37
Non-Climate- Asking Rent
*
-0.1% 1.3% 1.2% 0.2% 0.6% 1.2% 0.3% -1.0% 1.3% 2.4% 0.2% -0.7% 1.8% 3.7%
Source: © 2015 REIS, INC. As seen in Table 4.15, non-climate-controlled units in the
South Atlantic had the exact opposite results for the highest and lowest rental rate increases in the second quarter of 2015, with 5-by-5s reporting an increase of 2.9 percent and 10-by-20s hav- ing a 3.7 percent increase. This may be due to the high humidity levels experienced in the region, which results in a preference for climate-controlled units to prevent mold or damage to wood and other permeable materials.
Without a doubt, 2015 was a year for the self-storage record
books in terms of rental rates—and the future remains bright for the asset class since the industry’s momentum is expected to continue over the next several years. For existing self-storage facilities, increasing rental rates will be a viable option until enough new supply comes on line to meet the current pent-up demand.
Table 4.15 – South Atlantic Rental Rates (Non-Climate-Controlled Asking Rent) Change in
Change in Change in Change in
Change in Climate-
Controlled 5x5 Controlled 5x5 Controlled 5x10 Controlled 5x10 Controlled 10x10 Controlled 10x10 Controlled 10x15 Controlled 10x15 Controlled 10x20 Controlled 10x20 Asking Rent Asking Rent Asking Rent Asking Rent
Asking Rent *
0.5% 0.8% 0.8% 0.0% 0.9% 0.5% 0.5% -0.9% 1.9% 2.8% -0.2% -0.8% 2.2% 3.8%
Source: © 2015 REIS, INC.
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