CHICAGO—The nation's largest self-storage REITs did impressive business in 2016, recording significant increases in revenues and net operating incomes, according to a new report from MJ Partners, a Chicago-based self-storage firm. But after several years of stupendous growth, there was a noticeable change last year.
“The growth in revenue and operating income was still quite robust, but it did slow down a bit,” Marc A. Boorstein, principal, MJ Partners, tells GlobeSt.com. The self-storage REITs generated same-store revenue growth for the full-year 2016 ranging from 5.2% to 7.7%. But in the fourth quarter, revenue growth decelerated to a range of 4.0% to 6.3%.
And MJ Partners also found that occupancy rates among the nation's largest self-storage REITs, after rising for years, have plateaued in the low- to mid-90s. “Optimal occupancy used to be a little more than 80%,” Boorstein says, but the sector's big players brought in technology that tracks customers better and retains their business longer.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
