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?
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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.
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