Section 10 • Self-Storage Supply & Demand Migration is essentially the changing of residency due


to life events of one sort or another. When we track migra- tion, as opposed to population growth (birth rates, mortality rates, immigration), it will lead to a better understanding of what direction self-storage demand is headed in any given area.


As 2017 comes to an end, there is a lot of discussion as to what impact new supply will play over the next several years for the self-storage industry. The consensus


seems to believe that 2018 will be roughly similar to 2017, which, based on our data, we have a hard time reconciling.


How To Track Migration How do you efficiently track migration? The answer is very simple: Focus on jobs.


Job relocation is one of the largest life events and the


most volatile. There are two metrics that have been proven to accu-


rately track job relocation migration: labor force flows and non-farm payrolls. Labor force flows tracks the gross number of people changing jobs and non-farm payrolls showcases the total number of paid U.S. workers—a key metric in un- derstanding what drives labor forces flows. See Chart 10.2 on the previous page.


The point is, changes in job growth have the largest


impact on migration; since migration is the driving factor behind self-storage demand, it’s what we need to focus on.


So, instead of focusing on population growth, it’s time to start tracking migration and, in turn, tracking non-farm payroll growth. These figures are avail- able through the U.S. Bureau of Labor Statistics and can also be found for any region at radius. unionrealtime.com.


Self-Storage Supply As 2017 comes to an end, there is a lot of discussion as to what impact new supply will play over the next several years for the self-storage industry. The consensus seems to believe that 2018 will be roughly simi- lar to 2017, which, based on our data, we have a hard time reconciling.


How To Find Out What Supply Looks Like In Your Area


At Union Realtime, we utilize every method to accurately paint the supply picture, from finding projects on local city zoning and planning department websites to receiving regular updates from local developers, builders, and operators. One of the most powerful methods that we encourage all industry participants to do is to report activity you see in your area. Using Union Realtime’s Radius Platform, we have built an effortless process for users to report new development activity. For those of you who report a new project on our platform, we will provide you with free credits to use the platform as well.


We encourage everyone to visit our site and see what development activity exists before embarking on a new project.


While you are there, you can also use Radius to access anything from a detailed understanding of rental rates in your area to calculating demographics to printing a detailed supply report. For more information, please visit radius.union realtime.com.


112 Self-Storage Almanac 2018


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