Cushman & Wakefield Valuation & Advisory Self-Storage Business Briefing: Moving With Industry Confidence
Cushman & Wakefield's Valuation & Advisory is pleased to share its latest business briefing on the state of the self-storage industry.
Despite recent volatility in interest rates, investors remain confident in the self-storage market. The impact of recent significant increases in 10-Year Treasuries indicates capitalization rates will remain flat until the bond market stabilizes. Over the long run, it appears the rapid compression in self-storage cap rates is likely to flatten and stabilize.
Operationally, the asset class remains robust. Year-over-year results show increases of 3.1 percent for physical occupancy and 4.8 percent for rental income, as of the first quarter of 2013, according to Self-Storage Performance Quarterly report published by C&W. (To purchase the SSPQ report in full, visit the Inside Self-Storage Store.)
In addition to discussing interest-rate volatility, the following report summarizes the data from the Summer 2013 PwC (PricewaterhouseCoopers) Real Estate Investor Survey, for the domestic self-storage market. It also includes the results of an expanded survey, which includes market optimism, absorption time and other elements that characterize the current market conditions for the self-storage asset class.