US Retail and Food Services Sales Growth Update
Healthy Increase in Self-Storage Rental Rates
Steadily
increasing
consumer
awareness
25
20
15
Average Quarterly Net Rental Rate (US$/psf)¹
10
Driven by 5 Ds
5
Smaller housing
arrangements
Demand
Drivers
- Death, Divorce,
Decluttering,
Downsizing and
Dislocation
0
4Q 2020
1Q 2021
2Q 2021
3Q 2021
4Q 2021
Carteret Self-Storage
Millburn Self-Storage
Elizabeth Self-Storage
Perth Amboy Self-Storage
Increasingly
mobile
population
1. Net rental rate is annualized total rental revenue less discounts, bad debt and refunds.
Sources:
2. Green Street U.S. Self-Storage Outlook (January 2022).
3.
Cushman & Wakefield Research.
4.
Green Street Real Estate Alert (Dec. 14, 2021).
5. Green Street U.S. Self-Storage Outlook (November 2021).
In addition to 'life event' demand drivers (e.g., moving, divorce), the storage industry
continues to benefit from Covid-related needs, including: 1) businesses storing inventory;
2) decluttering for home offices; and 3) storage of apartment furnishings for those who
moved temporarily²
COVID-related demand materially increased storage utilization rates, and much of this
demand is likely to become sticky consumer behavior³
The surge in remote work caused homeowners to increase the amount of dedicated space
for home offices and home gyms in their residences, driving massive demand for self-
storage. Green Street forecasts that 70% of U.S. employees will work from home at least
one day per week in the near future, a substantial increase from a 12% projection prior
to the pandemic4
Move-in rates have historically trailed in-place rates. However, strong demand, high
occupancy levels, and limited new supply have caused overall move-in rates to surpass
in-place rents5
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