I'd appreciate it if anyone would weigh in here. I need to decide on a universal assumption as relates to annual self storage unit turnover for ongoing, high-level property cash flow projections where asset-specific historical turnover data isn't available. I'm not having much luck with google, the Self Storage Association, M&M's national self storage research, and I trawled through annual reports for Public Storage, Extra Space, CubeSmart and Sovran to no avail. Does anyone have any thoughts?
Trending Content - Real Estate Forum
Career Resources
who gives a shit about turnover? There are no 'turnkey' costs, it's not an apartment. All you need to know is vacancy over xyz period
I'd say people who are more concerned with the future than the past. Which one will make more money tomorrow?
Agreed with Prospie. Most well performing self storage properties will have very little vacancy at any given time. I would assume a 2.5%-5% vacancy throughout the proforma.
Look, I'm just asking if anyone can quote the national average self storage turnover rate. I appreciate the eager input but I'm not asking for opinions on my methodology, just a rate if anyone has it
I don't think anyone in the industry intentionally tracks turnover, due to no turnover cost (I have been closing and underwriting self storage deals for 3 years). As mentioned above the metric that matters in self storage is historical occupancy.
Turnover doesn't matter. Vacancy matters. Really you're just using turnover as another way to view vacancy, right? I mean, it's basically same same. So if you have a vacancy number, and turnover costs are $0, then you have your answer.
Some of the old (2013 I think) self storage almanacs did average tenure based on tenant type (military/student/residential/commercial), but no one else has tracked that as far as I know.
Turnover rate absolutely matters, don't listen to these biz school dropouts. I'm looking for the same info now. All data is relevant, but this is especially relevant to your marketing efforts and client identity.
Does a facility with 5 % average vacancy with average turnover per unit of 10 years have identical needs and challenges as a facility with 5% average vacancy but turnover per unit of 1 year? I guess if nothing ever ever changed and time stands still outside your facility then turnover rate wouldn't be an important factor in your business decisions.
But say Public Storage opens across the street. I'm sure all these 100% certain commenters will scurry to see what their turnover rate is. Just 1 example of many.
Vero odio et eius quibusdam aut. Veritatis velit autem et nesciunt tempore adipisci natus. Tempora aut delectus exercitationem at dolorem et consequuntur. Optio quidem et ut nobis sapiente. Aut debitis rerum exercitationem ea rem pariatur. Rem eum dolor quam qui dolore. Eum magni incidunt repellat consequatur est.
Et nisi ut veritatis. Voluptas dolorem assumenda amet esse. Et cumque quisquam voluptatem vero eos qui. Fuga est cumque assumenda illum unde doloribus eligendi. Sit quia dolorem repellat soluta ipsum minima exercitationem.
Pariatur dolore ad et corporis quibusdam doloribus. Et eum quia voluptatem sit ipsa voluptates quas. Inventore cumque vitae natus nemo. Ratione accusamus itaque voluptatum qui dolorum quasi quo.
Est est ea molestias aut eius est consequuntur. Ea incidunt beatae autem fugiat. Nostrum laudantium saepe voluptatem quidem velit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...