The business and financial news magazine, Forbes, recently released their list of the top 25 fastest growing U.S. cities (Sharf). At the top of the list are the Cape Coral-Fort Myers and Orlando areas in Florida. While there are several factors (economic, real estate, quality of life, etc.) contributing to growth in these cities, to self storage investors, markets with a significant increase in population, represent opportunity. Investors and developers move into these markets to supply the growing demand for self storage space from migrating families and young workers in need of extra space.
Self storage market data shows that over the last year, the Cape Coral-Fort Myers area saw an increase of 19% in facilities while the Orlando-Kissimmee-Sanford area saw an increase of 7%. Both markets have multiple development projects already planned or underway. For investors, knowing where opportunities exist is key, which is why access to micro-level self storage market data is crucial.
An example of micro-level data is market pricing. Local market pricing data indicates the Cape Coral-Fort Myers market has not seen a significant increase in rates for 5x5 non-climate controlled units over the last year. Average rates for these have stayed steady in the $35 - $40 range while 10x10 non-climate controlled units have stayed, on average, between $100 - $115. Meanwhile in the Orlando area, 5x5 non-climate controlled units have been consistently priced, on average, at $40 - $50 in the last 12 months and 10x10 non-climate controlled units, between $95 - $100. What can such data indicate?
As a real estate investor, developer or financial professional, this type of market data provides you with micro level insights which may not be part of typical due diligence reports or other market research. Pricing data analysis can show whether a market is underserved and help identify where, within that market, opportunities for growth exist. Investing in self storage pricing analysis tools help self storage professionals place themselves in a better position to make more informed business investment decisions.
About the Author
Cindy Rivera is the Support & Marketing Manager for StorTrack. Launched in 2014, StorTrack is the premier source for pricing data and analytics for the self storage industry.
Sharf, S.(2017, Feb. 10). Forbes.com. America's Fastest-Growing Cities 2017. Retreived from: https://www.forbes.com/sites/samanthasharf/2017/02/10/americas-fastest-growing-cities-2017/#435667ac3124