When it comes to making money, Los Angeles and 14 other major metro markets matter most to the country’s largest self-storage operator — to the tune of more than $1 billion last year in same-store revenue.
Self-storage REIT Public Storage racked up almost $1.1 billion in same-store revenue from the more than 1,200 facilities in its 15 most lucrative markets last year, according to the company’s 2013 annual report. That’s 65 percent of its total same-store revenue of $1.7 billion in 2013.
The remaining $505.3 million (35 percent) of Public Storage’s same-store revenue for 2013 came from 730 facilities around the U.S.
Self-storage facilities, retailers and other businesses use same-store revenue as a key metric to compare performance of locations that have been open at least a year. For Public Storage, the same-store figures exclude facilities bought or sold in 2013.
Spotlight on L.A.
In 2013, the L.A. market accounted for nearly 14 percent of the same-store revenue at Public Storage — the highest percentage among the REIT’s 15 top markets. Public Storage is based in the L.A. suburb of Glendale.
Public Storage generated nearly $233 million in same-store revenue last year from 177 facilities in the L.A. area, up 5.2 percent from 2012. According to its annual report, Public Storage controlled almost 22 percent of the Los Angeles self-storage market in 2013.
In the fourth quarter of 2013, the occupancy rate for the L.A. self-storage market was 88 percent, slightly above the national average and up from 80 percent during the same period a year earlier, according to a report from Cushman & Wakefield. The average 10×10 non-climate-controlled unit in the L.A. metro area went for $149 a month during the fourth quarter, the report says.
Among Public Storage’s 15 most lucrative markets, Public Storage saw the biggest jump in same-store revenue last year in Minneapolis-St. Paul — 8 percent. With a 7.9 percent spike in same-store revenue for 2013, the Houston area closely followed the Twin Cities market.
A matter of scale
Why do these 15 metro clusters mean so much to Public Storage? The answer: scale.
“Scale is important to our business for many reasons,” the REIT said in its annual report. “It enhances our brand recognition in a market (customers drive by and see our orange doors), greatly improves the efficacy of our Internet and television marketing programs, enhances our operational efficiency and our ability to recruit, train and develop people within a market. Scale generally lowers our operating costs and improves our competitive position.”
Here’s how Public Storage’s 15 major markets stacked up in 2013, ranked by total same-store revenue.
1. Los Angeles
Same-storage facilities: 177
Same-store revenue: $232.9 million
Change in same-store revenue (2012 to 2013): 5.2%
Share of total same-store revenue: 13.7%
Public Storage’s share of Los Angeles self-storage market: 21.8%
2. San Francisco
Same-store facilities: 126
Same-store revenue: $145 million
Change in same-store revenue (2012 to 2013): 6%
Share of total same-store revenue: 8.5%
Public Storage’s share of San Francisco self-storage market: Not available
3. New York City
Same-store facilities: 78
Same-store revenue: $111.7 million
Change in same-store revenue (2012 to 2013): 7.1%
Share of total same-store revenue: 6.6%
Public Storage’s share of New York City self-storage market: 10.3%
4. Chicago
Same-store facilities: 125
Same-store revenue: $106.3 million
Change in same-store revenue (2012 to 2013): 4.9%
Share of total same-store revenue: 6.2%
Public Storage’s share of Chicago self-storage market: 16.8%
5. Seattle
Same-store facilities: 85
Same-store revenue: $82.1 million
Change in same-store revenue (2012 to 2013): 6.3%
Share of total same-store revenue: 4.8%
Public Storage’s share of Seattle self-storage market: Unavailable
6. Washington, DC
Same-store facilities: 72
Same-store revenue: $81.8 million
Change in same-store revenue (2012 to 2013): 5.2%
Share of total same-store revenue: 4.8%
Public Storage’s share of Washington, DC, self-storage market: 20.1%
7. Miami
Same-store facilities: 59
Same-store revenue: $70.4 million
Change in same-store revenue (2012 to 2013): 3.1%
Share of total same-store revenue: 4.1%
Public Storage’s share of Miami storage market: 24.6%
8. Dallas-Fort Worth
Same-store facilities: 99
Same-store revenue: $68.2 million
Change in same-store revenue (2012 to 2013): 7.9%
Share of total same-store revenue: 4%
Public Storage’s share of Dallas-Fort Worth storage market: 11%
9. Houston
Same-store facilities: 80
Same-store revenue: $62.2 million
Change in same-store revenue (2012 to 2013): 6.3%
Share of total same-store revenue: 3.7%
Public Storage’s share of Houston self-storage market: 11.7%
10. Atlanta
Same-store facilities: 89
Same-store revenue: $59.6 million
Change in same-store revenue (2012 to 2013): 3.8%
Share of total same-store revenue: 3.5%
Public Storage’s share of Atlanta self-storage market: 15.6%
11. Philadelphia
Same-store facilities: 55
Same-store revenue: $44.8 million
Change in same-store revenue (2012 to 2013): 2.9%
Share of total same-store revenue: 2.6%
Public Storage’s share of Philadelphia self-storage market: 12.9%
12. Denver
Same-store facilities: 47
Same-store revenue: $39.8 million
Change in same-store revenue (2012 to 2013): 7.8%
Share of total same-store revenue: 2.3%
Public Storage’s share of Denver self-storage market: Unavailable
13. Minneapolis-St. Paul
Same-store facilities: 41
Same-store revenue: $33.9 million
Change in same-store revenue (2012 to 2013): 8%
Share of total same-store revenue: 2%
Public Storage’s share of Minneapolis-St. Paul self-storage market: Unavailable
14. Portland, OR
Same-store facilities: 41
Same-store revenue: $30.1 million
Change in same-store revenue (2012 to 2013): 5.1%
Share of total same-store revenue: 1.8%
Public Storage’s share of Portland self-storage market: Unavailable
15. Orlando/Daytona, FL
Same-store facilities: 45
Same-store revenue: $29.3 million
Change in same-store revenue (2012 to 2013): 4.2%
Share of total same-store revenue: 1.7%
Public Storage’s share of Orlando/Daytona self-storage market: Unavailable
