Cushman & Wakefield's Self Storage Industry Group
From data to decisions™
The Self Storage Industry Group (SSIG) is the trusted source for real estate information and research regarding self storage property. From data to decisions, the Group is dedicated to the Economics of Self Storage:
With an appraisal background, the Self Storage Industry Group can provide complete appraisal services in self-contained and summary report formats. Business arrangements vary to scope of services. Furthermore, it is the intent of the appraisal services to comply with the Uniform Standards of Professional Appraisal Practice as outlined by the Appraisal Standards Board of the Appraisal Foundation; federal regulatory agencies' guidelines; and, state Real Estate Appraiser Regulations.
The SSIG can provide financial feasibility reports that forecast cash flow and determine the economic viability of proposed development. Such analyses are useful for equity investors, debt providers and developers. Site specific analysis determines the project competitive position in relation to the competition.
The Self Storage Industry Group collects and analyzes data regarding market trends and sub-market specific profiles to understand conditions of supply, demand and equilibrium. For example, the Orange County, California database provides project specific data or a snapshot of the entire county. The SSIG has analyzed and forecast market conditions in all 50 states and in the top 100 metropolitan markets. Additional analyses have been completed on local trade areas, the best indicators of market conditions, to analyze the competitive position of a specific project. As competition increases, the ability to quantify winners and losers within the asset class becomes increasingly important.
The Self Storage Industry Group has developed an econometric model to forecast market demand. For years, self storage investors have been seeking to quantify the demand for self storage. Some market players utilize averages such as six square feet per capita. However, self storage demand can vary widely from neighborhood to neighborhood. In searching for local answers in connection with the appraisal practice, SSIG began to mine data for meaningful demographic relationships and demand for self storage property. There is good correlation between demand and key demographic variables. Using a multi-variable regression model, hundreds of markets have been analyzed over the past few years with consistent correlation among these variables and demand for self storage product. This analysis is key to determine if a market is under-supplied, over-supplied or at equilibrium.
As self storage increases in importance as an investment vehicle, experience alone is no longer a sufficient guide for decisions. Sophisticated investment decisions are based on quantitative and qualitative analyses with reliable conclusions. As an asset class, Standard & Poor's said REITs are "subject to the same economic and financial factors as other publicly traded US companies listed on major American stock exchanges." Investors seeking safety and yield are discovering the self storage asset class. The role of fiduciaries and their analyses increase in importance with the asset class, particularly at a time when the integrity of the reporting practices of some U.S. businesses has come under fire.
The scope of services of the SSIG varies from micro reports on individual projects to macro trend analysis of major markets. Services include market studies that detail conditions of supply, demand and market equilibrium utilizing static (supply side) analysis and dynamic (econometric forecast of demand) modeling. Market analysis must be considered in the conclusions of the quantity, quality and durability of the income level. Careful cash flow modeling is required to reflect these market characteristics. These factors are also considered in the valuation analysis and conclusions to ensure long run viability as an investment.
Services include unit mix analysis, investment analysis, portfolio review and assistance in strategic positioning. Assignments include preparation of broker's packages of product for sale, analysis of properties available for sale, asset analysis for value added opportunities, appraisal review, litigation support and tax assessment appeal. Individual project analysis includes evaluation of physical, functional (size, unit distribution) and external obsolescence that relate to the marketability of a project. With an array of expertise devoted to the self storage asset class, specialized consultation services are tailored to fit client requirements.
For information regarding your particular requirements, please contact us.