Mind The Gap: Using Street And Web Rates To Understand Demand
Self-storage demand can sometimes feel like a mystery. One day units are full, and the next, customers are vanishing. But what if the key to understanding it lies in the subtle difference between two numbers (street rates and web rates)? That gap isn’t just about discounts; it is a direct link to understanding self-storage demand. […]
Markets That Pack A Punch
Markets That Pack A Punch Did you catch Mike Tyson and Jake Paul sparring back in November? I’ll be honest—I just watched the highlights. But the decision was unanimous. Mike Tyson isn’t the same fighter he once was. And while Tyson’s punches might not have the same impact at 58, these cities have […]
Key Demand Metrics: Predicting Storage Demand
Key Demand Metrics: Predicting Storage Demand What would you say is the most important key metric in predicting self-storage demand and potential rent growth? Answers might include: Population growth Population density Median household income Average household income Supply per capita Incoming residential construction Incoming self-storage construction Percent of area that is renter-occupied These are […]
The State of Self-Storage Development
The State of Self-Storage Development The legendary Sam Zell famously quipped: “Taking risks today for tomorrow’s reward is both the most challenging and difficult of tasks. Unbridled optimism must be tempered with reality.” For this state of development piece, rather than emulating every US President at the State of the Union Address, I will temper […]
Does Lower Market Saturation (SF/C) Lead To Higher Storage Rates?
Does Lower Market Saturation (SF/C) Lead To Higher Storage Rates? Self-storage demand can feel like an unsolvable puzzle. But what if the key lies in one metric (square foot per capita [SF/C]) and its connection to street rates? Spoiler alert: It’s fascinating. I dove into 225 of the top MSAs in the U.S. to see […]
Comparing REIT’s Discounting Strategy
Revealing the Gap Between Street and Web Rates TractIQ is breaking down six years of self-storage discounting data in a 10-part series. Below, are parts 6-10. Scroll to the bottom to download all 10 parts of the report. First, let’s begin with some context and a few definitions. Self-storage customers sign monthly leases, which carries a double-edged […]
2024 Self-Storage US Real Estate Market Value
2024 Self-Storage Real Estate Market Value Is there anything more exciting than storing old high school yearbooks, holiday decorations, and outdated furniture? It’s understandable that self-storage may be off the list of lively dinner conversations, but real estate investors would argue the industry is anything but boring. In recent history, the self-storage asset […]
Self Storage Discounting 2018-2024
Revealing the Gap Between Street and Web Rates – Self Storage Discounting 2018-2024 TractIQ is breaking down six years of self-storage discounting data in a 10-part series. Below, Parts 1-5 cover major shifts in discounting strategies across the industry. First, let’s begin with some context and a few definitions. Self-storage customers sign monthly leases, which carries a […]
What demographics factors do Storage REITs analyze?
What demographics factors do Storage REITs analyze? Consolidation in the self-storage industry has been rampant for the past few decades. According to data analyzed by Armand Aghadjanians, self-storage properties owned by smaller operators dropped from 73% in 2018 to 64% in 2023. As the industry continues to become more institutionalized, self-storage owners should think critically about […]
The Relationship Between Homeownership and Self-Storage Growth
The Relationship Between Homeownership and Self-Storage Growth U.S. counties with the highest percentages of owner-occupied housing are among the places that are expected to post the slowest growth for self-storage facilities, according to a TractIQ review of survey data. Among places with more than 25 existing self-storage facilities, Lapeer County, Mich., with a homeownership rate […]
