Marcus & Millichap Real Estate Investment Services, a commercial property investment firm prominent in the self-storage industry, has released a series of semiannual reports for the second half of 2014, including one national report and more than 40 reports on major U.S. markets. The reports are produced by the firm’s National Self-Storage Group and released through its Research Services arm.
The two-page local reports cover trends in employment, population, unit vacancy and asking rental rates. They also provide an overview of rentable square feet per capita by state and median price and capitalization-rate trends by region. Recent self-storage property sales are also highlighted.
The national report covers key factors driving self-storage use including job growth, industry cap rates compared to the 10-year Treasury average, construction, occupancy and property sales.
“The national self-storage sector steams into the second half of 2014 following several quarters of strengthening property operations. Space demand is growing significantly in conjunction with an expanding economy, while restrained supply growth persists,” Marcus & Millichap analysts wrote. “Recently, the exceptional property performance posted by self-storage [real estate investment trusts] has brought greater attention to the sector and raised its stature among commercial real estate investors. Self-storage has long been cited as a sound portfolio diversifier by large multi-faceted investors and is a source of livelihood and wealth creation for small local investors. Improving economic conditions will support a favorable climate for transactions, while the near-term outlook for further strengthening in vacancy and rent growth is promising.”
Among the drivers creating demand for self-storage space is an increase in apartment rentals compared to declines in single-family homeownership. There has been an increase of 700,000 apartments rented during the last four years, according to the national report.
The Self-Storage Research Semiannual Reports are published twice each year and may be downloaded for free by users who register with the company’s website.
Marcus & Millichap produces more than 2,000 research products each year, officials said. The Research Services department offers a range of publications, from national economic perspectives to property-type-specific analyses at the market level. The company website enables users to search for reports by multi-family and commercial property type, as well as by location and keyword.
Marcus & Millichap has more than 1,300 investment professionals in offices throughout the United States and Canada. The company closed more than 6,600 transactions last year with a value of approximately $24 billion.
- Marcus & Millichap: Research Reports