Self Storage Summary Overview
Year Over Year
- Acquisition volumes are down across the board for all of the REITS. Total transaction volume is down 78.5% year over year.
- Self storage sector anticipated to experience a modest year-over-year growth in 2018 as the marketplace continues to "normalize" compared to performances from previous years.
- Public Storage, the country's largest self storage REIT, reported a 2.7% decline in revenue growth for 2017 compared to 2016 in each of its top 20 markets.
- Self storage sector is entering “uncharted territory” as it copes with the downturn in operating fundamentals.
- Commercial real estate research firm, Green Street Advisors, noted that the three key ingredients for REIT success in self storage - job growth, mobility and formation of renter households - has slowed, and projected that in 2018, the self storage sector's NOI growth will be below NOI growth for the wider REIT landscape.
- Most self storage REITs and large self storage operators predict slow to moderate revenue growth in 2018, ranging from 3-5%.
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