The Self Storage Industry Group (SSIG) of commercial real estate firm Cushman & Wakefield recently released its fourth-quarter 2012 Self-Storage Performance Quarterly (SSPQ), a research report containing income and operational data from more than 7,000 facilities in the nation's 50 largest metropolitan statistical areas (MSAs). The report also includes data regarding new construction trends, the use and cost of concessions, market rent and vacancy, and trend analyses. Notable findings include:
- The Self Storage Performance Index increased 11.8 percent to 106.9 compared to the fourth quarter of 2011.
- Compared to the fourth quarter of 2011, asking rents increased 2.3 percent to $0.90 per square foot per month for a ground-level, 10-by-10 unit without climate control.
- Median physical occupancy was up 5.3 percent to a national average of 85.7 percent compared to a year earlier.
- The number of facilities offering concessions is down from a year ago. The Concession Cost Index is at 96.5 compared to 103.5 a year earlier and is at its lowest point in the fourth quarter since 2005.
“Several years of recessionary market conditions caused many owners to be cautious with respect to raising rental income, but supply-and-demand metrics have improved, as shown by improved occupancy," said R. Christian Sonne, executive managing director of the SSIG.
The complete fourth-quarter SSPQ can be purchased at the Inside Self-Storage Store, a website providing on-demand insight and education for self-storage professionals. The store offers other C&W products including Metropolitan Statistical Area Reports, National Rental Activity Reports and customized Trade Area Snapshot Reports. Details can be found at www.insideselfstoragestore.com.
Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. The firm's Valuation & Advisory Division, which includes the SSIG, is one of the largest real estate valuation and consulting organizations in the world. Founded in 1917, the company has 253 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal.