Kroll Bond Rating Agency Inc. (KBRA) has released a special “PropertyBeat” focus report on the self-storage market. The report provides an overview of market drivers and examines the macro trends shaping the storage segment of the commercial real estate financing market, according to a company press release.
KBRA segments self-storage customers into four primary tenant categories: commercial, military, residential and students. Residential customers make up about 70 percent of the market, followed by business tenants at 17.5 percent, according to the release. The report also has data on the length of stay intended by customers and the top six states showing the largest percentage growth in square footage.
The report also discusses the industry’s move toward consolidation, highlighting the top six self-storage transactions in 2013, and provides historical data on rental performance nationally and by region.
“Self-storage demand has benefited in part due to the housing crisis and subsequent increase in multi-family rentals, as less space in the home often translates into a need for more storage,” officials said in the release. “This has helped the sector’s performance, notably during the recession.”
The national self-storage vacancy rate fell 260 basis points to 10.9 percent for the first half of 2014, according to the release. By comparison, self-storage loans securitized in KBRA-rated transactions during the first nine months of this year had an average vacancy of 14.5 percent, slightly higher than the national average, company officials said.
Titled “Self-Storage PropertyBeat: Recession Standout Exhibits Steady Performance,” the four-page PDF report is available for free download from the KBRA website, although site registration is required.
Established in 2010, KBRA provides investors with research. It is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization and is recognized by the National Association of Insurance Commissioners as a credit rating provider.
