

Self Storage
Performance Quarterly
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
Cushman & Wakefield | Valuation & Advisory
ii
The SSPI Self-Storage Performance Index increased in the 2
nd
quarter 2017, and is at 133.0 a positive 12.0%
change from 1
st
quarter 2017. Moreover, it increased 17.6% compared to 2
nd
quarter 2016.
Monthly Unit Absorption
- Net unit
absorption
(move-ins less move-
outs) indicates a slight negative trend.
For example, the total rental activity
was down 6.8% in 2
nd
Quarter 2016
vs. 2
nd
Quarter 2017, and the monthly
unit absorption was slightly negative.
The graph illustrates the average net
number of units rented each month
and is based upon a sample of 306
thousand storage units nationwide.
Leading Indicator
– Self Storage
Data Service’s Rent per Available
Square Foot (RPASF) is premised
upon asking rental rates and since it
takes six to twelve months to be fully
reflected in the facilities performance,
RPASF is considered to be a leading indicator. To measure the validity of this indicator, SSDS tracks the
correlation between RPASF and the average rental income as reported by the four REITs. There is a fairly high
degree of statistical correlation between the two as can be seen in the graph. The data demonstrates that the
pace in rent growth will slow, a function of revenue enhancement models already showing significant growth the
past three years. Rent growth in self storage will continue to exceed other real estate sectors.
-5.0%
0.0%
5.0%
10.0%
15.0%
SSDS' Rent per Available Square Foot vs. the Average Four REITs Rental Income
(Percentage Change - 1Yr Moving Average)
"REITs"
SSDS RPASF
-15
-10
-5
0
5
10
15
Net Units Rented
Net Units Rented
Per Facility Per Month
Nationwide - Average
2014 2015 2016 2017