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With the sector\u2019s strong fundamentals, we expect to see continued growth, investment, and a surge of acquisitions throughout 2023\u201d<\/span><\/span><\/span><\/p><\/blockquote>\n
Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, released its U.S. Self Storage Performance Quarterly (SSPQ) report, measuring the health of more than 19,000 self storage facilities in the country\u2019s 50 largest Metropolitan Statistical Areas (MSAs).<\/span><\/span><\/span><\/p>\n
Despite physical occupancy of non-climate-controlled self storage units declining by -1.0% year-over- year (YOY) nationwide, the self storage sector saw a 7.4% uptick in asking rental rates and 5.7% increase in rental income in 2022.<\/span><\/span><\/span><\/p>\n
REITs also performed well YOY, with asking rental rates, rental income, and physical occupancy climbing by 3.4%, 6.9%, and 1.0% consecutively.<\/span><\/span><\/span><\/p>\n
Construction starts increased by 7% quarter-over-quarter in Q4 2022 and increased by 22% YOY; however, the number of projects in the pipeline declined by 6% in Q4 2022 due to 31 projects placed on hold, causing a 31% decline compared to Q4 2021.<\/span><\/span><\/span><\/p>\n
The top five markets with the largest number of projects in the pipeline include: New York-Newark- Edison with 80 projects, Atlanta-Sandy Springs-Marietta with 50, Philadelphia-Camden-Wilmington with 32, Los Angeles-Long Beach-Santa Ana with 31, and Houston-Baytown-Sugar Land with 25.<\/span><\/span><\/span><\/p>\n
\u201cThe self storage sector has shown impressive resiliency over the past few years having outpaced all other leading asset classes,\u201d said Mike Mele, Executive Vice Chair, Self Storage Advisory Group. \u201cFrom an investment standpoint, self storage remains an attractive opportunity particularly within emerging markets with considerable population driving a significant number of new development opportunities.\u201d<\/span><\/span><\/span><\/p>\n
The report\u2019s key findings include:<\/span><\/span><\/span><\/p>\n
\n
- The Self Storage Performance Index (SSPI) decreased 2.1% compared to Q3 2022 and increased 7.4% compared to Q4 2021. The SSPI now stands at 176.3*<\/span><\/span><\/span><\/li>\n
- Asking rental rates decreased 3.0% compared to Q3 2022 and increased 7.4% compared to Q4 2021. REITs decreased 4.5% compared to the previous quarter and increased 3.4% YOY<\/span><\/span><\/span><\/li>\n
- Median physical occupancy remained unchanged compared to Q3 2022 and decreased 1.0% over Q4 2021. REITs increased 1.0% compared to Q3 2022 and increased 1.0% from Q4 2021<\/span><\/span><\/span><\/li>\n
- Transaction volumes hit a record high of $13.5B in Q4 2021 and remained over $2.5B per quarter through 2022. Average capitalization rates inched downward a record low 5% in Q4 2022, despite interest rate hikes<\/span><\/span><\/span><\/li>\n
- Rent per Available Square Foot (RPASF) for the benchmark 100 square feet of non climate-controlled units fell 3.4% from Q3 2022 but are up 5.7% compared to the Q4 2021<\/span><\/span><\/span><\/li>\n
- REITs decreased 3.1% compared to the previous quarter but increased 6.9% YOY<\/span><\/span><\/span><\/li>\n<\/ul>\n
\u201cWith the sector\u2019s strong fundamentals, we expect to see continued growth, investment, and a surge of acquisitions throughout 2023,\u201d Mele said. The SSPQ provides an independent and comprehensive overview of the status of the domestic self-storage industry.<\/span><\/span><\/span><\/p>\n
*Self Storage Performance Index: The SSPI measures the changes in net operating income, taking into consideration changes in asking rents, physical occupancy, and concessions, as well as operating expenses. It is therefore a reliable and unbiased way of measuring the changes in self-storage\u2019s operating performance.<\/span><\/span><\/span><\/em><\/p>\n
About Cushman & Wakefield<\/span>:<\/span><\/span><\/span><\/p>\n
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 52,000 employees in over 400 offices and approximately 60 countries. In 2022, the firm had revenue of $10.1 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services.<\/span><\/span><\/span><\/p>\n
To learn more, visit www.cushmanwakefield.com<\/span><\/strong><\/a> or follow @CushWake<\/span><\/a><\/strong> on Twitter<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"
With the sector\u2019s strong fundamentals, we expect to see continued growth, investment, and a surge of acquisitions throughout 2023\u201d Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, released its U.S. Self Storage Performance Quarterly (SSPQ) report, measuring the health of more than 19,000 self storage facilities in the country\u2019s 50 largest Metropolitan Statistical Areas (MSAs). Despite physical occupancy of non-climate-controlled self storage units declining by -1.0% year-over- year (YOY) nationwide, the self storage sector saw a 7.4% uptick in asking rental rates and 5.7% increase in…<\/p>\n","protected":false},"author":13,"featured_media":3393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[21],"tags":[],"gutentor_comment":0,"_links":{"self":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3391"}],"collection":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/comments?post=3391"}],"version-history":[{"count":6,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3391\/revisions"}],"predecessor-version":[{"id":3456,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/posts\/3391\/revisions\/3456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media\/3393"}],"wp:attachment":[{"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/media?parent=3391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/categories?post=3391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/listselfstorage.com\/us\/industry-insights\/wp-json\/wp\/v2\/tags?post=3391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}