DECEMBER 2013

Storage Trends Quarterly

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

ACQUISITIONS IN 2013

Spurred by attractive interest rates and low cap rates, self-storage investors have gone on an acquisition tear in 2013. Public Storage Inc., the biggest publicly traded self-storage REIT, is on track to rack up $1 billion in acquisitions this year. Several of Public Storage’s competitors also have been scooping up facilities.

“The acquisitions market has come to a rolling boil, with a plethora of deals hitting the market,” David Rogers, CEO of self-storage REIT Sovran Self Storage Inc. (Uncle Bob’s), said in November.

2014 promises to be an active year for self-storage acquisitions as well. Here are some of this year’s biggest self-storage deals:

Buyer: Public Storage Inc.
Seller: Stor-All Systems Inc.
Purchase price: $430 million
Number of facilities: 44
Number of units: 26,000
Total square footage: 2.7 million
Locations: FL, GA, VA, CO, NC

Buyers: CubeSmart L.P. and Heitman LLC
Seller: Private Mini Storage Inc.
Purchase price: $326.2 million
Number of facilities: 36
Number of units: N/A
Total square footage: 2.1 million
Locations: TX, NC

Buyer: Public Storage Inc.
Sellers: Harrison Street Real Estate Capital LLC and Morningstar Properties
Purchase price: $315 million
Number of facilities: 43
Number of units: 22,500
Total square footage: 2.9 million
Locations: GA, NC, SC, TX, VA

Buyer: Public Storage Inc.
Seller: Southern Self Storage
Purchase price: Est. $240 million
Number of facilities: 21
Number of units: N/A
Total square footage: N/A
Location: FL

Buyer: Extra Space Storage Inc.
Seller: All Aboard Mini Storage
Purchase price: $206.1 million
Number of facilities: 20
Number of units: 14,800
Total square footage: N/A
Location: CA

Buyer: Extra Space Storage Inc.
Sellers: Harbert U.S. Real Estate Fund IV, L.P. and W.P. Carey Inc.
Purchase price: Est. $200 million
Number of facilities: 20
Number of units: 12,500
Total square footage: 1.4 million
Locations: AR, CA, CT, FL, GA, etc.

Sources: SpareFoot research, company news releases, company financial filings, media reports

WHERE ARE THE WIDEST DISPARITIES IN STORAGE RENTAL PRICES?

Los Angeles County, CA
10×20 Regular
min
$112.50
max
$599
5×5 Regular
min
$24.13
max
$132.22
5×10 Regular
min
$36
max
$192
Philadelphia County, PA
5×5 Climate-Controlled
min
$28.24
max
$89
5×5 Regular
min
$25.43
max
$124.55
5×10 Climate-Controlled
min
$48.73
max
$124.55
Orange County, FL
10×30 Climate-Controlled
min
$170
max
$599
10×20 Regular
min
$87
max
$399
10×30 Regular
min
$131
max
$429
Montgomery County, TX
10×10 Regular
min
$55
max
$160
5×5 Climate-Controlled
min
$35
max
$85
10×10 Climate-Controlled
min
$24.50
max
$230
Harris County, TX
5×5 Regular
min
$14.50
max
$64
5×5 Climate-Controlled
min
$24.50
max
$92
10×20 Climate-Controlled
min
$119
max
$419
Pinellas County, FL
5×10 Regular
min
$29
max
$104.20
5×5 Regular
min
$16
max
$63.50
5×10 Climate-Controlled
min
$40
max
$140
Lake County, IL
10×20 Climate-Controlled
min
$169
max
$459
10×20 Regular
min
$50
max
$229
5×10 Regular
min
$39
max
$99
Palm Beach County, FL
5×5 Regular
min
$14
max
$72
5×5 Climate-Controlled
min
$20
max
$104
10×10 Climate-Controlled
min
$74.74
max
$255

Note: Minimum and maximum prices are based on averages per facility, not actual prices.

WHY ARE YOU MOVING?

We surveyed hundreds of storage customers to find out the reason for their move.

JULY
AUGUST
SEPTEMBER
OCTOBER

HOW DO OUR FACILITY CLIENTS DETERMINE PRICING?

WHERE SHOULD YOU BUILD NEXT?

Counties with the fewest storage facilities per capita.

1. New York County, NY

County population:
1,585,873
Facilities in county:
24
Facilities per 100k:
1.5
People per facility:
66,078

2. Queens County, NY

County population:
2,230,725
Facilities in county:
65
Facilities per 100k:
2.9
People per facility:
34,319

3. Essex County, NJ

County population:
783,969
Facilities in county:
25
Facilities per 100k:
3.2
People per facility:
31,359

4. District of Columbia

County population:
601,723
Facilities in county:
20
Facilities per 100k:
3.3
People per facility:
30,086

5. Kings County, NY

County population:
2,504,700
Facilities in county:
84
Facilities per 100k:
3.4
People per facility:
29,818

6. Baltimore City, MD

County population:
805,029
Facilities in county:
27
Facilities per 100k:
3.4
People per facility:
29,816

7. Richmond County, NY

County population:
468,730
Facilities in county:
16
Facilities per 100k:
3.4
People per facility:
29,296

8. Bronx County, NY

County population:
1,385,108
Facilities in county:
51
Facilities per 100k:
3.7
People per facility:
27,159

9. Suffolk County, MA

County population:
722,023
Facilities in county:
31
Facilities per 100k:
4.3
People per facility:
23,291

10. Honolulu County, HI

County population:
953,207
Facilities in county:
41
Facilities per 100k:
4.3
People per facility:
23,249

11. Mercer County, NJ

County population:
366,511
Facilities in county:
16
Facilities per 100k:
4.4
People per facility:
22,907

12. Cumberland County, NJ

County population:
156,898
Facilities in county:
7
Facilities per 100k:
4.5
People per facility:
22,414

13. St. Lawrence County, NY

County population:
111,944
Facilities in county:
5
Facilities per 100k:
4.5
People per facility:
22,389

14. Hudson County, NJ

County population:
634,266
Facilities in county:
29
Facilities per 100k:
4.6
People per facility:
21,871

15. Arlington County, VA

County population:
207,635
Facilities in county:
10
Facilities per 100k:
4.8
People per facility:
20,764

16. Union County, NJ

County population:
536,499
Facilities in county:
24
Facilities per 100k:
5.4
People per facility:
18,500

17. Ramsey County, MN

County population:
508,640
Facilities in county:
28
Facilities per 100k:
5.5
People per facility:
18,166

18. San Francisco County, CA

County population:
805,235
Facilities in county:
45
Facilities per 100k:
5.6
People per facility:
17,894

19. Philadelphia County, PA

County population:
1,526,006
Facilities in county:
87
Facilities per 100k:
5.7
People per facility:
17,540

20. Nassau County, NY

County population:
1,339,532
Facilities in county:
78
Facilities per 100k:
5.8
People per facility:
17,173

TOP 10 MILITARY BOOM TOWNS

1. Elizabethtown, KY

Average annual growth in per-capita military GDP: 17.00%
Average annual growth in per-capita non-military GDP: 6.33%
Average annual population growth: 2.74%
Average annual per-capita income growth: 3.51%

2. El Paso, TX

Average annual growth in per-capita military GDP: 14.98%
Average annual growth in per-capita non-military GDP: 0.76%
Average annual population growth: 2.14%
Average annual per-capita income growth: 1.94%

3. Hinesville, GA

Average annual growth in per-capita military GDP: 8.91%
Average annual growth in per-capita non-military GDP: 4.57%
Average annual population growth: -0.07%
Average annual per-capita income growth: 0.80%

4. Colorado Springs, CO

Average annual growth in per-capita military GDP: 7.86%
Average annual growth in per-capita non-military GDP: 0.37%
Average annual population growth: 2.30%
Average annual per-capita income growth: 1.56%

5. Clarksville, TN

Average annual growth in per-capita military GDP: 4.61%
Average annual growth in per-capita non-military GDP: 3.78%
Average annual population growth: 1.46%
Average annual per-capita income growth: 2.77%

6. San Angelo, TX

Average annual growth in per-capita military GDP: 5.96%
Average annual growth in per-capita non-military GDP: 1.10%
Average annual population growth: 1.34%
Average annual per-capita income growth: 2.47%

7. Sumter, SC

Average annual growth in per-capita military GDP: 7.03%
Average annual growth in per-capita non-military GDP: 1.20%
Average annual population growth: 0.21%
Average annual per-capita income growth: -0.34%

8. Columbus, GA

Average annual growth in per-capita military GDP: 4.07%
Average annual growth in per-capita non-military GDP: 0.00%
Average annual population growth: 1.44%
Average annual per-capita income growth: 2.10%

9. Rapid City, SD

Average annual growth in per-capita military GDP: 2.55%
Average annual growth in per-capita non-military GDP: 1.08%
Average annual population growth: 1.27%
Average annual per-capita income growth: 3.69%

10. Hanford-Corcoran, CA

Average annual growth in per-capita military GDP: 1.04%
Average annual growth in per-capita non-military GDP: 1.79%
Average annual population growth: 0.49%
Average annual per-capita income growth: 6.48%

10 FASTEST-GROWING COLLEGE TOWNS

1. Raleigh, NC

(North Carolina State University)

2012 campus enrollment: 25,176
2000-10 population growth rate: 46.29%
2010 population: 403,892
2000 population: 276,093

2. College Station, TX

(Texas A&M University)

2012 campus enrollment: 49,861
2000-10 population growth rate: 38.25%
2010 population: 93,857
2000 population: 74,267

3. Las Cruces, NM

(New Mexico State University)

2012 campus enrollment: 18,024
2000-10 population growth rate: 31.44%
2010 population: 97,615
2000 population: 74,267

4. Gainesville, FL

(University of Florida)

2012 campus enrollment: 32,598
2000-10 population growth rate: 30.29%
2010 population: 124,354
2000 population: 95,447

5. San Marcos, TX

(Texas State University)

2012 campus population: 34,225
2000-10 population growth rate: 29.25%
2010 population: 44,894
2000 population: 34,733

6. Columbia, MO

(University of Missouri)

2012 campus population: 33,805
2000-10 population growth rate: 28.36%
2010 population: 108,500
2000 population: 84,531

7. Fayetteville, AR

(University of Arkansas)

2012 campus enrollment: 23,199
2000-10 population growth rate: 26.76%
2010 population: 73,580
2000 population: 58,047

8. Flagstaff, AZ

(Northern Arizona University)

2012 campus enrollment: 25,364
2000-10 population growth rate: 24.53%
2010 population: 65,870
2000 population: 52,894

9. Auburn, AL

(Auburn University)

2012 campus enrollment: 20,466
2000-10 population growth rate: 24.18%
2010 population: 53,380
2000 population: 42,987

10. College Park, MD

(University of Maryland)

2012 campus enrollment: 26,775
2000-10 population growth rate: 23.34%
2010 population: 30,413
2000 population: 24,657

The quarterly SpareFoot Storage Trends report is based on our surveys of hundreds of storage tenants, as well as pricing and reservation data from our network of 6,500+ facilities. SpareFoot makes it easy to multiply your online visibility and reach new customers. With seamless software integration and no long-term commitments, you only pay when a customer moves in.

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