Self Storage Performance Quarterly 1Q17

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April 2017

Dear Subscriber, Gains continue in rental income and asking rents Nationwide, as physical occupancy increase, which is expected in the first quarter of the yearly cycle. The increase in rental income is particularly important, because it demonstrates revenue enhancement models continue to raise rents on income in place Nationwide. This can further be demonstrated in the “National” graph of actual rent with steady fourth quarter values. Supply and demand metrics appear to be moving. Construction starts decreased 46% from last quarter, and was up 33% as of 1Q16. According to F.W. Dodge, there have been 326 new starts the last four quarters (new starts includes new construction and alterations, additions, or renovations).

National Actual Rent Per SQFT (10x10 Analysis)

1.60

1.50

1.40

1.30

1.20

1.10

1.00

0.90

0.80

Climate Ground

Climate - Upper Level

Non-Climate Ground

Non-Climate - Upper Level

Source: Cushman &Wakefield, Inc. The Self Storage Performance Quarterly , a publication of Cushman & Wakefield, Inc., is intended solely for use by paid subscribers. Reproduction or distribution in whole or part without written permission is prohibited and subject to legal action. Copyright ® 2017

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