NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) today released its PropertyBeat special focus report on the self-storage market. The U.S. self-storage industry has experienced stable performance in the recent years and is considered a somewhat recession-resistant sector due to the public need for storage even during an economic downturn. This report will provide an overview of the market drivers as well as a look into the macro trends shaping this growing segment of the commercial real estate financing market.
The motivations for seeking out self-storage are quite varied, and as such, various regions and renters are influenced by different demographic patterns. In general, self-storage customers fall into one of four main categories: commercial, military, students and residential renters. The two largest customers are residential and commercial which comprise 70.0% and 17.5% of the total renter population. The profile of renters varies from income, length of rental period, to reasons for needing third party storage.
Self-storage demand has benefited in part due to the housing crisis and subsequent increase in multifamily rentals, as less space in the home often translates into a need for more storage. This has helped the sector’s performance, notably during the recession. According to the 2014 Self-Storage Association and REIS, the national vacancy rate fell 260 basis points to 10.9% for the first half of this year. For comparison purposes, self-storage loans securitized in KBRA rated transactions during the first nine months of this year have an average vacancy of 14.5%, slightly higher than the national average.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
