Marcus & Millichap, a commercial property investment firm prominent in the self-storage industry, has released a series of semiannual reports for the second half of 2015, including one national report and more than 40 reports on major U.S. markets. The reports are produced by the firm’s National Self-Storage Group and released through its Research Services arm.
The two-page local reports cover economic and household trends in the market, as well as asking rental rates and unit vacancy. They also provide an overview of rentable square feet per capita by state and average price and capitalization-rate trends by region. Recent self-storage property sales are also highlighted.
The national report covers key factors driving self-storage use including job growth, industry cap rates compared to the 10-year Treasury average, demographic trends, occupancy and property sales.
“Further advancement in the nation’s job market will bode well for the self-storage sector, leading to increased occupancies and rents through the remainder of this year,” Marcus & Millichap analysts wrote. “Steep improvements in self-storage operations were realized in the first half of 2015, and while the seasonality of the self-storage industry will contribute to a slowdown in performance growth in the second half, the market will realize robust progression from the end of 2014.”
One byproduct of current market conditions is an influx of small, private investors. “The self-storage investment market is building momentum as buyer interest rises and banks loosen financing criteria,” according to the report. “Class-A properties continue to be in high demand; however, sales of properties between $1 million and $2.5 million are gaining traction as small, private investors enter the market.”
Development projects are also expected to gain momentum, creating tighter competition in some markets. “Vacancies have constricted significantly since the recession, and as a new construction cycle begins, investors should be mindful of the development pipeline and the increase in competitive properties coming to market nearby,” the report said.
The Self-Storage Research Semiannual Reports are published twice each year and may be downloaded for free by users who register with the company’s website.
Marcus & Millichap produces more than 2,000 research products each year, officials said. The Research Services department offers a range of publications, from national economic perspectives to property-type-specific analyses at the market level. The company website enables users to search for reports by multi-family and commercial property type, as well as by location and keyword.
Marcus & Millichap is a commercial-property investment firm. It has more than 1,500 investment professionals in offices throughout the United States and Canada. The company closed more than 7,600 transactions in 2014 with a value of approximately $33.1 billion.
Sources:
- Marcus & Millichap: Research Reports
