Storage Trends Quarterly

Your quarterly look at self-storage industry performance and customer behavior

2014

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Self-Storage Construction Spending Hits Four-Year High

Construction spending on self-storage facilities is on the rise, with $530 million tallied in 2013. That’s the largest amount of self-storage construction spending in four years, according to figures from the U.S. Census Bureau.

Construction spending totaled $34 million in January 2014, compared with $28 million during the same month in 2013 (a 21.4 percent rise). In February, construction spending took a dip compared with the previous year. Spending totaled $38 million, compared with $59 million during the same month last year.

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Projects Starting or in Progress in 2014

174,000

SQUARE FEET

1,500

UNITS ADDED

Glendale

CALIFORNIA

CA

57,000

SQUARE FEET

$4 mil.

PROJECT COST

Chattanooga

TENNESSEE

TN

Uncle Bob's

MANAGED BY

500,000

TOTAL SQUARE FEET

100,000 FT2 / FACILITY

6,500

UNITS ADDED

1,300 UNITS / FACILITY

New York

NEW YORK

NY

113,000

SQUARE FEET

$15 mil.

PROJECT COST

2

FACILITIES ADDED

Chicago

ILLINOIS

IL

700

UNITS ADDED

Cleveland

OHIO

OH

200

UNITS ADDED

Wilmington

NORTH CAROLINA

NC

20,900

SQUARE FEET

166

UNITS ADDED

Midland

MICHIGAN

MI

2013 Unit Pricing Trends

Hover over the bars in the graph below to see the average price for each month.

10x10 unit
5x10 unit 
$0
$20
$40
$60
$80
$100
  • Jan
  • Feb
  • Mar
  • Apr
  • May
  • Jun
  • Jul
  • Aug
  • Sep
  • Oct
  • Nov
  • Dec
$81.20
$53.30
$83.70
$53.80
$85.70
$54.60
$85.30
$54.70
$88.10
$57.00
$89.50
$57.50
$89.60
$58.20
$89.70
$56.00
$87.80
$56.20
$86.80
$53.70
$85.90
$54.40
$83.60
$54.10

REIT Performance During the Upseason

2012 - 2013

6.5%

RENTAL INCOME INCREASE

5.2%

SAME-STORE RENTAL INCOME INCREASE

1.6%

SAME-STORE OCCUPANCY INCREASE

$0.46

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

35.4%

RENTAL INCOME INCREASE

7.5%

SAME-STORAGE INCOME INCREASE

2.2%

SAME-STORE OCCUPANCY INCREASE

$0.65

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

18.0%

RENTAL INCOME INCREASE

8.7%

SAME-STORAGE INCOME INCREASE

3.8%

SAME-STORE OCCUPANCY INCREASE

$0.37

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

19.4%

RENTAL INCOME INCREASE

7.6%

SAME-STORAGE INCOME INCREASE

6.3%

SAME-STORE OCCUPANCY INCREASE

Zero

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

7.4%

RENTAL INCOME INCREASE

5.6%

SAME-STORAGE INCOME INCREASE

1.4%

SAME-STORE OCCUPANCY INCREASE

$0.56

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

21.1%

RENTAL INCOME INCREASE

7.6%

SAME-STORAGE INCOME INCREASE

1.8%

SAME-STORE OCCUPANCY INCREASE

$0.73

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

13.9%

RENTAL INCOME INCREASE

7.0%

SAME-STORAGE INCOME INCREASE

2.5%

SAME-STORE OCCUPANCY INCREASE

$0.38

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

21.6%

RENTAL INCOME INCREASE

6.9%

SAME-STORAGE INCOME INCREASE

5.0%

SAME-STORE OCCUPANCY INCREASE

$0.13

SAME-STORE RENT PER OCCUPIED SQ. FT. INCREASE

Sources: Financial reports from Public Storage, Extra Space, Sovran, CubeSmart

Unit Pricing Trends: 5x5 Units

Average rent in Q3 2013 Average rent in 2014 Average rent in 2015
(projected)
$115.00
Non-CC
$118.27
Non-CC
$121.62
Non-CC
$146.48
CC
$151.18
CC
$156.11
CC

2013 Interactive Price Map

Hover over each state to see the average price of a 5x5 unit.

2013 Price List

State
5 x 5
Per Ft2
AK $85.13 $2.07
AL $34.65 $0.77
AR $39.62 $0.53
AZ $35.87 $1.01
CA $52.55 $1.40
CO $54.88 $1.33
CT $59.02 $1.52
DC $90.47 $2.41
DE $55.51 $1.38
FL $45.09 $1.26
GA $43.06 $0.93
HI $73.14 $2.44
IA $38.14 $0.80
ID $33.34 $0.72
IL $54.88 $1.40
IN $35.14 $0.78
KS $39.26 $0.98
KY $44.32 $0.86
LA $44.78 $1.10
MA $47.61 $1.49
MD $55.75 $1.33
ME $52.36 $0.95
MI $44.41 $1.08
MN $65.57 $1.60
MO $43.66 $0.96
MS $36.78 $0.82
MT $31.00 $0.60
NC $44.15 $0.99
ND $46.20 $0.86
NE $52.95 $0.94
NH $41.99 $1.34
NJ $52.68 $1.46
NM $34.67 $0.97
NV $36.43 $0.80
NY $90.33 $2.59
OH $33.69 $0.89
OK $36.05 $0.82
OR $53.20 $1.30
PA $41.82 $1.16
RI $41.47 $1.19
SC $46.51 $0.99
SD $50.83 $0.79
TN $39.59 $0.86
TX $48.25 $1.11
UT $29.44 $0.76
VA $58.73 $1.36
VT $47.92 $1.07
WA $49.11 $1.31
WI $41.73 $1.03
WV $46.25 $0.83
WY $46.00 $0.74

Source: Reis Inc.

15 Top Baby Boomer “Boom Towns”

Are you a self-storage operator or developer looking to expand? Here are some economically healthy areas that may be ripe for your storage business.

San Antonio, TX

8%

2000 - 2010

BABY BOOMER POP. GROWTH

Boise, ID

AVG. ANNUAL PER-CAPITA GDP GROWTH

3.5%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

2.1%

HOUSING AFFORDABILITY INDEX

198.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.035

San Antonio, TX

Boise, ID

 11.7%

2000 - 2010

BABY BOOMER POP. GROWTH

Raleigh, NC

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.0%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.4%

HOUSING AFFORDABILITY INDEX

224.8

TOTAL HEALTH CARE WORKERS PER CAPITA

.036

Boise, ID

Raleigh, NC

 10.9%

2000 - 2010

BABY BOOMER POP. GROWTH

Austin, TX

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.9%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

0.7%

HOUSING AFFORDABILITY INDEX

224.4

TOTAL HEALTH CARE WORKERS PER CAPITA

.034

Raleigh, NC

Austin, TX

 6.4%

2000 - 2010

BABY BOOMER POP. GROWTH

McAllen, TX

AVG. ANNUAL PER-CAPITA GDP GROWTH

3.6%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.6%

HOUSING AFFORDABILITY INDEX

202.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.028

Austin, TX

McAllen-Edinburg-Mission, TX

 9%

2000 - 2010

BABY BOOMER POP. GROWTH

Nashville, TN

AVG. ANNUAL PER-CAPITA GDP GROWTH

2.1%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.2%

HOUSING AFFORDABILITY INDEX

250.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.030

McAllen, TX

Nashville, TN

 2%

2000 - 2010

BABY BOOMER POP. GROWTH

Orlando, FL

AVG. ANNUAL PER-CAPITA GDP GROWTH

3.0%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

2.4%

HOUSING AFFORDABILITY INDEX

236.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.036

Nashville, TN

Orlando, FL

 10.5%

2000 - 2010

BABY BOOMER POP. GROWTH

Phoenix, AZ

AVG. ANNUAL PER-CAPITA GDP GROWTH

0.07%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.6%

HOUSING AFFORDABILITY INDEX

229.3

TOTAL HEALTH CARE WORKERS PER CAPITA

.033

Orlando, FL

Phoenix, AZ

 11.5%

2000 - 2010

BABY BOOMER POP. GROWTH

Chattanooga, TN

AVG. ANNUAL PER-CAPITA GDP GROWTH

0.5%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

0.8%

HOUSING AFFORDABILITY INDEX

231.2

TOTAL HEALTH CARE WORKERS PER CAPITA

.031

Phoenix, AZ

Chattanooga, TN

 2.4%

2000 - 2010

BABY BOOMER POP. GROWTH

Charlotte, NC

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.8%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.9%

HOUSING AFFORDABILITY INDEX

230.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.044

Chattanooga, TN

Charlotte, NC

 7.2%

2000 - 2010

BABY BOOMER POP. GROWTH

Columbia, SC

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.5%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.5%

HOUSING AFFORDABILITY INDEX

229.7

TOTAL HEALTH CARE WORKERS PER CAPITA

.029

Charlotte, NC

Columbia, SC

 2.3%

2000 - 2010

BABY BOOMER POP. GROWTH

Knoxville, TN

AVG. ANNUAL PER-CAPITA GDP GROWTH

2.4%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.4%

HOUSING AFFORDABILITY INDEX

228.9

TOTAL HEALTH CARE WORKERS PER CAPITA

.042

Columbia, SC

Knoxville, TN

 3.4%

2000 - 2010

BABY BOOMER POP. GROWTH

Houston, TX

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.4%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.6%

HOUSING AFFORDABILITY INDEX

236.4

TOTAL HEALTH CARE WORKERS PER CAPITA

.041

Knoxville, TN

Houston, TX

 1.2%

2000 - 2010

BABY BOOMER POP. GROWTH

Jacksonville, FL

AVG. ANNUAL PER-CAPITA GDP GROWTH

2.3%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

2.9%

HOUSING AFFORDABILITY INDEX

225.3

TOTAL HEALTH CARE WORKERS PER CAPITA

.029

Houston, TX

Jacksonville, FL

 6.5%

2000 - 2010

BABY BOOMER POP. GROWTH

Provo-Orem, UT

AVG. ANNUAL PER-CAPITA GDP GROWTH

0.2%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

1.2%

HOUSING AFFORDABILITY INDEX

276.2

TOTAL HEALTH CARE WORKERS PER CAPITA

.037

Jacksonville, FL

Provo-Orem, UT

 9.7%

2000 - 2010

BABY BOOMER POP. GROWTH

AVG. ANNUAL PER-CAPITA GDP GROWTH

1.6%

AVG. ANNUAL PER-CAPITA PERSONAL INCOME GROWTH

0.5%

HOUSING AFFORDABILITY INDEX

200.0

TOTAL HEALTH CARE WORKERS PER CAPITA

.025

Which marketing channels send our facility clients the most tenants?

*Survey takers could select up to three channels

0
20%
40%
60%
80%
100%
  • Their own websites1
  • Walk-ins2
  • Aggregators like SpareFoot3
  • Yellow Pages (print)4
  • Yellow Pages (online)5
  • CityGrid Media6
  • Billboard or other outdoor advertising7
  • Radio or TV ads8
57.37%
66.04%
49.22%
12.64%
12.02%
3.66%
12.23%
1.25%
  1. Their own websites: 57.37%
  2. Walk-ins: 66.04%
  3. Aggregators like SpareFoot: 49.22%
  4. Yellow Pages (print): 12.64%
  5. Yellow Pages (online): 12.02%
  6. CityGrid Media: 3.66%
  7. Billboard or other outdoor advertising: 12.23%
  8. Radio or TV ads: 1.25%

Self-Storage Rent Hikes in 2014

For a 10×10 non-climate-controlled unit

5 markets with the largest expected rent increase

(10×10 non-climate-controlled unit)

  • 6.7% Austin, TX
  • 6.6% Charlotte, NC
  • 4.9% Miami, FL
  • 4.8% Houston, TX
  • 4.6% Denver, CO

5 markets with the smallest expected rent increase

(10×10 non-climate-controlled unit)

  • 1.3% Detroit, MI
  • 0.8% Orlando, FL
  • 0.5% Fort Lauderdale, FL
  • 0.4% Norfolk, VA
  • 0.2% MD suburbs, D.C.

Why are people moving?


  Student Military Work relocation Downsizing Divorce Other
November
2013
6.14% 1.75% 20.18% 20.76% 11.70% 39.47%
December
2013
8.46% 2.82% 30.64% 17.48% 8.65% 31.95%
January
2014
5.04% 2.86% 24.71% 18.32% 7.56% 41.51%
February
2014
5.28% 2.29% 21.65% 21.65% 9.33% 39.79%
March
2014
4.94% 2.23% 21.05% 18.66% 10.21% 42.90%
  Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014
Student 6.14% 8.46% 5.04% 5.28% 4.94%
Military 1.75% 2.82% 2.86% 2.29% 2.23%
Work
relocation
20.18% 30.64% 24.71% 21.65% 21.05%
Downsizing 20.76% 17.48% 18.32% 21.65% 18.66%
Divorce 11.70% 8.65% 7.56% 9.33% 10.21%
Other 39.47% 31.95% 41.51% 39.70% 42.90%

Where are people looking for storage?


  The area I'm moving to The area I'm moving from Moving within the same area
December
2013
43.65% 21.43% 34.92%
January
2014
35.86% 21.04% 43.10%
February
2014
35.74% 22.18% 42.08%
March
2014
32.11% 21.46% 46.42%
  Dec 2013 Jan 2014 Feb 2014 Mar 2014
The area
I'm moving to
43.65% 35.86% 35.74% 32.11%
The area
I'm moving from
21.43% 21.04% 22.18% 21.46%
Moving within
the same area
34.92% 43.10% 42.08% 46.42%