Self Storage Summary: Q3 2017
- 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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