Section 7 • Occupancy
2011 Q4 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 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1
2020 Q2 Sources: 2019 Almanac and Radius+
82.1% 82.4% 85.0% 85.8% 85.0% 85.3% 87.8% 87.4% 86.5% 86.6% 89.1% 88.7% 88.0% 88.2% 90.2% 89.6% 88.8% 89.1% 91.2% 92.2% 90.7% 90.3% 92.8% 89.7% 88.0% 87.7% 91.7% 91.5% 90.2% 90.1% 91.0% 91.5% 90.5% 89.9%
92.2%
Dixon, Universal’s COO, says “serious lease-up issues” are coming in the industry because of new product hitting the market. Projected rents have decreased by 20 percent to 30 percent in all markets, increasing the need to use promotions.
“Those coming into the industry had better do more homework and beef up their lease-
up cash requirements,” Dixon says. According to Ross, the big REITs “are finally doing the smart thing” by increasing rates
even in highly competitive markets, though he doubts that will continue. Spending on pay- per-click Google advertising has risen probably more than 40 percent in 2020 to attract new customers, and he and Dixon expect that to continue.
Though new development generally slowed in March and April because of required
social distancing’s effects on construction, the Southeast has been less affected thanks to fewer pandemic-related regulations, says Chris Nebenzahl, director of Yardi Matrix. Construc- tion rebounded to pre-pandemic levels starting in May. Yardi Matrix forecasts a roughly one percent slowdown in 2020 deliveries compared to its pre-pandemic first-quarter forecast for the year.
Nebenzahl says self-storage’s outperformance in the past six months makes him optimis- tic for improvements in rates and occupancy in 2021, which “should be a pretty good year for storage.”
Midwest (East North Central)
91.0%
Midwest (West North Central) 89.6% Northeast (Middle Atlantic) Northeast (New England) South Atlantic
South (East South Central) South (West South Central) West (Mountain) West (Pacific)
* Based on 2nd Quarter Numbers
90.9% 89.3% 90.7% 90.4% 89.8% 91.4% 92.1%
90.4% 91.1% 90.8% 89.9% 90.6% 90.4% 90.2% 92.3% 92.3%
Source: Radius+
National Occupancy Rates The numbers in Table 7.1 on page 59 are based on Q2 num- bers between 1987 and 2020. The data show occupancy was 92.2 percent in 2020, up 1.2 percent from 91 percent in 2019. This follows a 0.7 percent decrease from Q2 2018 to Q2 2019. Both quarters decreased from Q2
2017, which was at 92.8 percent. In 2016 and 2015, occupancy numbers exceeded 90 percent and were the highest percentage figures going back to 1987, which were mostly in the 80s and in several instances in the 70s.
Digging deeper into the quar-
terly numbers in Table 7.2, Q2 2018 through Q2 2020 had 90-plus percentages, excluding Q1 2020, which was 89.9 percent. Q3 2017 through Q1 2018 showed high 80s. Percentages were 90-plus from Q2 2016 through Q2 2017. Overall, the
60 Self-Storage Almanac 2021
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152
