A research organization known for tracking the hotel industry is turning their attention towards self-storage development.
Hendersonville, TN-based STR, Inc. (formerly Smith Travel Research) has launched a new database designed to track new self-storage development and expected completion dates. Developers can contribute to the database by submitting project details on STR’s website.
Anne Hawkins, executive VP at STR, said that their new coverage of the self-storage industry is a natural extension of the company’s 30-year focus on the hotel industry.
“In both sectors, it is extremely important to have visibility into the supply in the industry at large as well as any one market in order to prevent overbuilding,” Hawkins said.
Hawkins said self-storage and hotels share similar key performance metrics: rate, occupancy and yield.
“We believe that we can meaningfully improve the performance of self storage operators by providing greater transparency in the industry,” Hawkins said.
In addition to self-storage, STR is also initiating coverage of the health club sector.
In addition to compiling information submitted by developers, STR will also conduct primary research to locate new self-storage developments.
Once the first round of results are compiled, Hawkins said an executive summary will be provided to operators who submitted data.
“Moving forward, we envision distributing summary reports on a monthly basis,” Hawkins said.
STR will also begin tracking performance data.
“We are simultaneously building out databases to collect both performance data and a listing of all self storage facilities nationwide, which will be particularly helpful in understanding how new supply will impact the performance of operators as we enter a development phase in the industry,” Hawkins said.
Dean Jernigan, CEO of construction lending firm Jernigan Capital, said increased tracking of new self-storage development is greatly needed.
“Transparency with new supply entering the industry will help predict when too much development can trigger a downturn in the performance of a certain market or the industry overall,” Jernigan said. “STR’s database will help operators, developers and financing partners make smarter decisions on where and when to build.”