Self-Storage Expense Report 2013
Operating expenses incurred by self-storage operators can vary widely, particularly when analyzed solely on a single unit of analysis such as per square foot of rentable building area. The data compiled in this report is from the proprietary database of the Self Storage Industry Group (SSIG) at Cushman & Wakefield. It is presented on a per-square-foot basis (median and average) and expressed as a ratio of effective gross income. The sample includes data from 539 self-storage facilities and is presented nationally and by NCREIF (National Council of Real Estate Investment Fiduciaries) region and subdivision. Data is analyzed using nine key expense categories:
- Taxes: Real property taxes and direct assessments
- Insurance: Building and liability insurance expenses
- Repairs and Maintenance: Elements typical for self-storage maintenance, such as third-party contracts, trash removal, landscaping, pest control, gate repairs, etc.
- Administration: Expenses related to office functions, such as telephone, postage, bank charges, credit reports, and professional fees for legal services, data processing, etc.
- Onsite Management: Expenses for full-time management, relief managers and payroll-related costs
- Offsite Management: Fees for outside management and overhead expenses, calculated as a ratio of the effective gross income for self-storage properties
- Utilities: Electricity, water and sewer service, trash pickup and natural gas
- Advertising: Expenses related to facility websites, optimization costs, social media campaigns, marketing promotions, door hangers and other advertising
- Miscellaneous: Expense variables not considered in other categories
This data will appeal to self-storage owners, operators and analysts to help benchmark performance and trends.
SSIG’s statistics come from 7,000 self-storage facilities (of 17,000 facilities in the top 50 MSAs), tracked every 90 days. The group tracks more than 1 million storage units monthly.
Cushman & Wakefield is among the world's largest privately held commercial real estate services firms. The firm's Valuation & Advisory Division, which includes SSIG, is one of the largest real estate valuation and consulting organizations in the world. Cushman & Wakefield reports are useful data and analysis tools for bankers, lenders, real estate investment trusts, Wall Street advisory companies, brokers and other professionals.
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