SkyView Advisors Self Storage Industry Report Q3 2017

SkyView Advisors Self Storage Industry Report Q3 2017
Posted: 11/15/2017 Link:
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Self Storage Summary: Q3 2017

Acquisitions Update

  • Acquisition volumes are down across the board for all of the REITS. Total transaction volume is down 63% year over year,
  • Transaction volume for Q3 2017 is down by an average of 9% as compared to Q3 2016.
  • CubeSmart and Life Storage had no acquisitions this quarter while Extra Space and Public Storage combined for a total of $79,100,000 in acquisitions. National Storage Affiliates continues to be active with a spend of $123,800,000 on acquisitions this quarter.
  • Private equity money continues to have a strong appetite for self storage especially as the REITS have pulled back.

Operating Fundamentals & New Supply

  • Overall top line revenue growth continues its deceleration. Demand remains soft in many markets and new supply continues to have a negative impact on pricing power and occupancy trends.
  • Some REITS have noted higher than anticipated incentives and increased internet marketing expenses due to the pressure of new supply. There is a continued focus on discounts as a necessary means to maintain and drive occupancy.
  • Western markets, such as California, continue to be strong with moderate deceleration in top line growth as compared to other markets in the country.

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