The Mele Group, the predominant self-storage advisory team for commercial property-investment firm Marcus & Millichap, has planned a series of videos examining real estate trends within the storage industry. The first two videos, examining market performance and development, respectively, have been released. Both feature Michael Mele, senior director, and Luke Elliott, associate vice president of investments, of Marcus & Millichap’s National Self Storage Group.
The first video, titled “Industry Outlook,” discusses how the self-storage real estate market performed during the first half of 2016. Mele and Elliott make observations about self-storage facility occupancy and rental rates as well as property transactions. The advisors believe secondary self-storage markets and underperforming facilities will see higher occupancy this year, in part because many top-performing locations in major markets are already full or close to full. Same-store rental rates are expected to rise, while the volume of real estate transactions is also expected to increase.
The second video, titled “Trending Self-Storage Development Markets,” is also viewable on the Mele Group channel. It identifies markets that have seen heavy development growth in the last year including several secondary markets in the Northeast, Southeast and Southwest. It also discusses the number of new self-storage facilities expected to open this year and the total construction cost of those projects.
The Mele Group’s client base consists of individual property owners, real estate investment trusts, and private institutional-level funds and firms. In 2015, the group closed 47 self-storage transactions in 11 states for more than $280 million.
Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout the United States and Canada. The company closed more than 8,700 transactions in 2015 with a value of approximately $37.8 billion.