Market conditions as featured in the 2010 Self-Storage Almanac

Market Conditions by Major City or CBSA
Another tool of benchmark analysis is comparing market conditions in the largest metropolitan areas of the country or CBSA (core based statistical area), This analysis is based on comparing existing supply to a forecast of stabilized demand. The demand forecast is based on an econometric model developed by the Self Storage Industry Group of Cushman & Wakefield. It compares existing demand in a CBSA to four Demographic variables: population, percentage of renters, average household income, and average household size. Using multi-variable regression analysis, the data is compared from the forecast CBSA to all other CBSAs in the data set. The outcome is a quantified indication of stabilized demand for self-storage for each CBSA….

Location, Location, Location
Understanding a local market begins with a survey of the local competition within the trade area – not some of the facilities, but all of the facilities in the trade area. This total supply can be compared to demographic data, such as total population within the trade area, to determine the amount of self-storage measured in terms of square feet per person. The rentable square feet per person of self-storage within the trade area can be compared to national, state, and CBSA benchmarks.
Another way to analyze market conditions in the local trade area is to understand occupancy of competing facilities. Some investors consider a marked under-supplied if occupancy of all competitors is 90 percent or higher within a trade area, market equilibrium if occupancy is in the 80 percent to 89 percent, and oversupplied if below 80 percent.

Tools of Analysis
Ultimately, investors must complete their own due diligence to satisfy their own investment criteria. Cumulatively, these tools can be used as benchmarks in identifying self-storage opportunities. The state index is comparative, although not comprehensive. Even in areas with a high index score, local markets or trade areas may be underserved. Similarly the CBSA tables can be a useful reference to review market conditions in large cities. Yet, most importantly, it is the market condition sin the local trade area that warrant the most consideration. As self-storage demand is local and demand is difficult to induce from outside the trade area, determining market conditions in the local trade area (either qualitatively by surveying the competition or through quantitative demand modeling) is key to a successful self-storage facility.



Since its first edition in 1992, the Self Storage Almanac has become the most comprehensive statistical reference guide for the self storage industry. Investors, developers, operators, financial institutions, real estate brokers and other business publications worldwide turn to the Self Storage Almanac for reliable information about the self-storage industry.

Being informed is essential, especially in today’s constantly changing self storage market. The industry we know today has evolved into a professionally run business that far surpasses the expectations of its earliest pioneers. The Self Storage Almanac offers over 150 pages of the latest, most up-to-date facts, statistics and analysis about the self storage industry including:

• Owner Profiles
• Population Mobility
• Rental Rates
• Crime And Security Issues
• Occupancy Rates
• Rent-Up Issues
• Manager Training And Compensation
• CAP Rates
• Marketing Issues
• Loan And Investment Analysis
• Seasonal Occupancy Variance
• Construction Costs
• Climate Controlled And Multi-Level Facilities
• MSA Supply And Demand Analysis
• State-By-State Occupancy Levels
• And Much More!



This is just a sample of the wealth of information that is available in the 2010 Self-Storage Almanac, published by MiniCo Publishing. For more information or to order go to ministoragemessenger.com.