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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