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SkyView Advisors Self Storage Industry Report 2017 Q4

SkyView Advisors Self Storage Industry Report 2017 Q4
Posted: 3/5/2018 Link: SkyViewAdvisors.com
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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.

Operating Fundamentals

  • 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%.

Download the full report here. 

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