The Self Storage publicly held REITs (Real Estate Investment Trusts) recently announced their financial results for the 2nd Qtr 2014, and they were very impressive. Same Store Results (Compared to Q2 2013) Revenues improved an average of 7.4%, Net Operation Income (NOI) was up 9.1%, and Occupancy Levels surged to an all time high of 92.6% – a 2.01% improvement.
Q2 2014 Self Storage REITs – Behind the Numbers
Strong demand for self storage rental is the key factor. The lack of new development during the recent economic recession resulted in a lack of new supply in some markets allowing operators to achieve higher occupancy levels and increase rental rates at the same time. The results of which show solid operational performance.
The Self Storage REITs are also benefiting from their improved internet presence in an industry that has highly fragmented ownership. Over 80% of the 50,000 self storage facilities in the USA are owned by companies or individuals that could be considered “mom and pop” operators (they own less than 3 facilities). In an industry that is showing over 50% new rentals being derived from internet searches, the more sophisticated publicly held self storage REITs are taking up high internet rankings for keywords that are critical in generating rental leads.
These trends should continue throughout the 3rd quarter of 2014. Historically, the summer months are the busiest months for the Self Storage Industry.
If you are in need of self storage space in South Orange County CA, San Clemente Self Storage is one of the top operators in Orange County, offering over 100,000 square feet of space and 700 storage units. Give San Clemente Self Storage a call today at 949-366-1133.