CBRE Group Inc., a commercial real estate services and investment firm, has released its “Self Storage Operating Expense Report” for the first quarter of 2017 through its Valuation & Advisory Services Division. The four-page report includes expense data on a national and regional basis across nine categories. The content is based on 2016 information from 681 facilities comprising nearly 48 million square feet, according to the report.
The data includes fixed expenses for insurance and real estate taxes, as well as variable expenses for administration, advertising, onsite and offsite management, miscellaneous, repairs and maintenance, and utilities. The report also expresses expenses in terms of total expenses per square foot, effective gross income per square foot and as a percentage of total operating expenses.
On a national level, self-storage expenses averaged $5.25 per rentable square foot, with an average expense ratio of 35.2 percent across the sample. Real estate taxes account for 28.3 percent of all operating expenses, while costs tied to management represent 38.2 percent. The sample showed an effective gross income of $14.91 per square foot.
“Expense ratios are forecast to decline over the next year due to higher ancillary income (mostly from tenant insurance), continued emphasis on revenue management, and more controls on operating costs as markets tighten,” the report states.
Expense data is provided for eight sub-regions: Mideast, Northeast, East-North Central, West-North Central, Mountain, Pacific, Southeast and Southwest.
A PDF version of the report is available as a free download from the CBRE website.
The CBRE Valuation & Advisory Services Group provides appraisals, feasibility and market studies, underwriting due diligence, and other consulting services. It has a staff of more than 1,700 appraisers, architects, engineers and environmental scientists in more than 300 metropolitan areas around the world.
CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, employs approximately 70,000 employees, excluding affiliates, and serves real estate investors, occupiers and owners through more than 400 offices worldwide. CBRE offers strategic advice and execution for appraisal and valuation; corporate services; development services; investment management; mortgage banking; property, facilities and project management; property sales and leasing; and research and consulting.
