Although most of the top publicly traded Self Storage REITs will not report their final financial results until the end of July 2014, the financial performance of their REIT shares had a very good performance, closing the 2nd QTR effective June 20, 2014 with great results showing an 18.1% return since January 1, 2014.
As you can see from the graphic above, only the Residential Apartment sector of the REITs had a better financial return coming in at 23.47%.
The self storage industry continues to boom due to the fact that USA households have significant demand for storage space, with one out of 10 renting a storage unit. This demand has grown significantly since 1996 when 1 out of 16 households rented a storage unit.
Self Storage REITs – Growth Opportunities Ahead
There are only 4 publicly-traded self-storage REITs that own around 4,170 properties of the 54,000 facilities in the United States (only 7%). Although the public REITs are very aggressive in acquiring new properties, there clearly is opportunity to grow their asset base. In fact, of the companies that actively acquiring properties, there are only really 12 (including the 4 self-storage REITs) that only own approximately 7,000 facilities. That leaves a significant amount of potential for purchases of privately owned properties.
Self Storage Occupancy Levels – All Over 90%
2014 is turning into a banner year for the self storage industry, with all 4 Major Self Storage REITs reporting occupancy levels above 90% through the first 6 months of the year.
What does this mean for the average renter of space in South Orange County?
We are seeing occupancy levels grow in the San Clemente and San Juan Capistrano Markets too. All major self storage facilities are reporting record occupancy levels. Military deployment being one of the driving factors in occupancy improvement.
If you are in need of self storage space in the San Clemente area, please consider San Clemente Self Storage – please call 949-366-1133. Ask about our San Clemente Storage Units Rent Special.