Self storage deliveries in H1 19 are on track for another record year! Check where new facilities are popping up.
There is now over 1.7 billion square feet of self storage space in the U.S., or approx. 5.4 square feet per person.
We are beginning to see a new wave of development in countries such as Thailand and the Philippines.
Capitalization rates for self storage facilities have stabilized over the previous three years.
Unless you have the years of expertise, a feasibility study by a self storage expert is highly recommended.
Generally, "other income" - retail sales, tenant insurance, etc. - ranges from 1-10% of storage unit rental income.
Typically, economic occupancy is 2% to 5% lower due to discounts and concessions.
Investors are forecasting lower growth rates (from 5%-8% to 3%-5%) than in recent past due to influx of new supply.
What makes this type of storage unique is that there are no specific demand indicators.
The biggest expense impacting facility value is real estate taxes. Nationwide, product can range from $30-$400/SF.