Marcus & Millichap Real Estate Investment Services, a commercial property investment firm prominent in the self-storage industry, has released its first-quarter 2014 “Self-Storage Research Report,” which highlights industry trends and performance regarding development, occupancy, sales and more. With a stated value of $150, the free report provides an overview of 2013 data as well as outlooks for the current year, offering insight to changes in occupancy rates, rents and inventory levels, and an assessment of sales dynamics.
Positive momentum in the industry has increased interest from a wide range of investors, lifting demand and tightening cap rates, according to John Chang, first vice president of research services. As a result, investment and sales have picked up outside core market areas.
“The self-storage sector will benefit from the convergence of several positive factors in 2014. The U.S. economy continues to build momentum while increasing population and household formations also boost self-storage demand,” company officials said in an e-mail highlighting the report. “Investors will increasingly focus efforts on secondary and tertiary markets to capitalize on the higher yields offered by these markets.”
With construction of new developments lagging behind consumer demand for storage, operators will continue to capitalize on high occupancy to drive rental rates, according to the report. The two-page report can be downloaded from the company’s website.
Marcus & Millichap has more than 1,000 investment professionals in offices nationwide and closed more than 6,100 transactions in 2012.
The Marcus & Millichap Research Services department offers a range of publications, from national economic perspectives to property type-specific analyses at the market level.