ANALYSIS OF THE MARKET FOR A NEW SELF-STORAGE FACILITY HIGHWAY 301 SITE PARRISH, FLORIDA - CONDEV STRATTON RESEARCH This Report was Prepared ...
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ANALYSIS OF THE MARKET FOR
A NEW SELF-STORAGE FACILITY
HIGHWAY 301 SITE
PARRISH, FLORIDA
This Report was Prepared Especially For
CONDEV
By
STRATTON RESEARCH
September 2018
TABLE OF CONTENTS
__________________________________________________________________
Section Title Page
__________________________________________________________________
Preface iv
I Summary and Recommendations 1-1
II Site Analysis and Projected Demand in the Primary Market Area 2-1
III The Competitive Environment 3-1
IV Net Demand and Absorption Potential 4-1
V Design, Unit Mix and Gross Rent Potential 5-1
A Appendix: Analysis of Self-Storage Demand in the United States A-1
__________________________________________________________________
iii
PREFACE
This report was prepared for Condev by Jim Stratton of Stratton Research. This study is an
assessment of the market support for a proposed self-storage facility on a site located on
the south side of Highway 301 east of Chin Road in Parrish, Manatee County. A summary
of the results and recommendations are presented in Section I. Sections II and III consider
demand and the competitive supply, respectively. The site’s absorption potential is
analyzed in Section IV and unit mix and rents are the subject of Section V. The research
and analysis was done in September of 2018.
Here is the regional location:
iv
STRATTON RESEARCH
SECTION I
SUMMARY AND RECOMMENDATIONS
There is sufficient unsatisfied demand in the primary market area to support a new facility at the
subject site.
The site is located on the south side of U.S. Highway 301 in Parrish, Florida. The primary
market area is the region within a three-mile radius. It is generally east of I-75 and north of the
Manatee River.
The primary market area (PMA) is developing rapidly. The current population is about 24,700
people. Thousands of new homes are planned for development in the PMA and the surrounding
area. Our projection calls for an average of 627 homes to be added to the PMA annually through
2023. By 2023 the population of the PMA is projected to be about 31,656.
Today there is demand for a total of 176,600 square feet of self-storage space in the PMA. The
competitive supply totals only about 69,200 square feet, leaving net unsatisfied demand for
107,400 square feet. (All figures include both standard and climate-controlled storage space.)
The volume of net demand will increase over the next couple of years, unless there is
construction of new facilities. We don't know of any facilities under construction or planned that
would have an impact on the PMA at this time.
By 2021 the market should be able to absorb up to about 113,200 square feet of self-storage
space at the subject site.
Our Expected Case absorption projection is as follows:
1-1
STRATTON RESEARCH
Standard space 46,900
Climate-controlled space 66,300
Total 113,200
See Section IV.
Note: We ran another scenario assuming that a 60,000 square foot facility would be built within
2.5 miles of the subject site by 2021. This lowered net demand, of course, though not a great
deal. The resulting absorption potential was 41,700 square feet of standard space and 61,200
square feet of climate control for a total of 102,900 square feet.
We believe that a plan with 100,000 square feet of rentable space could be created in the portion
of the site reserved for self-storage.
Here is one way to do it:
Type of Space 1-Story 2-Story Total
Standard space 35,000 0 35,000
Climate-controlled space 35,000 30,000 65,000
Total 70,000 30,000 100,000
Our analysis of the market results in the following mix:
Type of Space Units Avg. SF
Standard space 253 138
Climate-controlled space 584 111
Total 837 119
The proposed mix by unit size is presented on Table 5-2 in Section V.
The proposed development should be fully operational by 2021, when the rent per square foot is
projected to be about $1.72 per square foot.
Rents are relatively high in the area already, due to the lack of competition and the area's growth.
In our projection of future rents, we start with today's Class A rents and assume that rents will
increase by 2.5% per year over the next three years.
The rate of $1.72 per square foot is a blended rate, composed of 75% web rates and 25% walk-in
or street rates. It is also sensitive to the proposed unit mix. See Table 5-4 in Section V.
1-2STRATTON RESEARCH
The capitalized value of the development is likely to be in the range of $18-million to $20-
million.
This is based on a net income of $1,195,000 and a cap rate range of 6.0% to 6.5%. See Table 5-5
in Section V.
1-3STRATTON RESEARCH
SECTION II
SITE ANALYSIS AND PROJECTED DEMAND
IN THE PRIMARY MARKET AREA
The subject site is located in on the south side of Highway 301 east of Chin Road in Parrish.
Parish is a community located to the east of I-75 in the northern part of Manatee County. The
site is about four miles east of the interstate. Highway 301 is a four-lane divided road in the
vicinity of the subject site.
Much of the land within one mile of the site is developed with residential lots and relatively new
housing. There are active new home developments in the immediate area. Commercial
development is limited today in the area, although there is a Publix Supermarket in a shopping
center not far to the west of the site.
The traffic count on Highway 301 a little over a mile east of the site was 12,300 vehicles per day,
on average, in 2005. The count is no doubt much higher today due to the development of the
area.
The site consists of 13 acres, including a considerable amount of wetland. It has about 670 feet
of frontage along Highway 301. A couple of outparcels for retail development will probably be
created, with some frontage left for the self-storage facility, which will be towards the rear of the
property. The property immediately to the east will be developed with outparcels on 301 and an
apartment complex.
Parrish is in the North Port-Sarasota-Bradenton metropolitan area, which has been growing at a
strong pace since 2000.
2-1STRATTON RESEARCH
The North Port-Sarasota-Bradenton metropolitan area consists of two counties: Manatee and
Sarasota.
The population of the metro area grew at an average annual rate of 1.76% between 2000 and
2010, which is quite rapid. The population grew by an average of 11,232 people per year in this
period. There was much faster growth in the first five years of the decade than after 2005. The
pace of growth retuned to form after 2010, with the area gaining an average of 12,236 persons
per year through 2018.
The share of the growth in Manatee County has risen from 50% between 2000 and 2005 to 61%
since 2010.
Residential and multifamily construction have risen steadily in the metro area since 2010, as the
following chart shows:
RESIDENTIAL BUILDING PERMITS
NORTH PORT-SARASOTA-BRADENTON METRO
7,000
6,000
5,000
4,000
Units
3,000
2,000
1,000
-
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
SF Units 5,983 2,215 1,583 1,317 1,704 1,838 2,655 3,779 4,174 4,992 5,814 5,989
MF Units 1,688 466 489 246 251 547 447 1,644 1,484 2,149 2,290 2,190
Self-storage facilities draw from restricted market areas.
While conditions in the larger metro area have some bearing on self-storage demand the
character of the micro-market around the subject site is most important. Customers tend to seek
out the most conveniently located facility, although some will go rather far for a better price or to
find exactly the right sized unit.
The primary market area (PMA) is the region from which a self-storage facility is likely to draw
70% or more of its customers. It is the households and businesses located within the PMA who
will determine the quantity and quality of the demand that a facility on the site can absorb.
2-2STRATTON RESEARCH
The PMA is also where the primary competitors for a share of the market are to be found. Some
of the existing facilities located outside of the PMA may also be competitive for a share of the
demand (see Section III for analysis of the competition).
The subject site’s primary market area is likely to be the region within a three-mile radius.
Several factors can influence the size and shape of the PMA, with the chief ones being:
Drive times
Traffic patterns
Market barriers
Locations of clusters of competition
To determine the probable primary market area, we start with the region within a seven-minute
drive time. Here is what the seven- and ten-minute drive time map looks like, with one-, two-
and three-mile radius overlays:
A seven-minute drive time easily reaches three or more miles each way along Highway 301.
There is less penetration in other areas due to the road system. This will change as the area
develops. The Manatee River restricts the road pattern and residential development to the south.
There are only three existing self-storage competitors within four miles of the site, so
competitive clusters are not a factor.
2-3STRATTON RESEARCH Due to these considerations, we feel that the site’s primary market area will be the region within a three-mile radius of the subject site. A high quality facility at the site could draw from further north, where a lot of residential development is planned. But in tome we expect that more storage facilities will be developed to the north to take advantage of the growing demand. See the map that follows this text. The population of the primary market area (PMA) is estimated to be 24,682 this year (2018). The population of the PMA grew extremely rapidly between 2000 and 2010, gaining an average of 959 persons per year, a compound rate of 7.9%. Growth began to slow towards the end of this period due to the recession. Between 2010 and 2018 the rate of population growth was 4.1% per year and the area gained an average of 839 persons annually, according to Esri estimates. There is relatively little multifamily housing in the area, but a lot of mobile homes (27% of the total). Single family homes represent 69% of the inventory today. Over the next five years we expect strong growth in single family homes and some multifamily additions. The proportion of mobile homes will probably decline. The average household size in the PMA is about average, at 2.49 persons. About 48% of the households are composed of two people, compared with 43% in the metro area and 32% nationally. Only 20% are single-person households, compared with 31% in the metro area. Only about 8% of all the households in the area are renters rather than homeowners. The renter ratio could rise some in the future. Here's a summary of how the PMA compares with the larger North Port-Sarasota-Bradenton metro area: Item PMA Metro Area Median age 47.6 52.5 Household head 25-54 41% 34% Average household size 2.47 2.24 Married adults 65% 54% Population
STRATTON RESEARCH
The 2018 to 2023 projection by Esri calls for an average annual gain of 427 housing units in the
PMA. That seems far too conservative given what is planned in the Parrish area. There is one
estimate that 23,000 new housing units are planned.
We identified at least 18 planned residential projects within a three-mile radius of the subject
site. There are more to the north and the east over to I-75. Homebuilders are active in some of
them and some are under development, zoned or proposed. We estimate that they could deliver
nearly 15,000 more homes to the area over the next several years. When we adjust for overlap
with the PMA we project at least 7,400 new units within a three-mile radius of the subject site.
We don't know how quickly these projects will be developed with lots and new homes and
multifamily units. But if assume that an average of 5% absorption this year, rising to 10% per
year by 2020 the resulting net gain would be about 627 units annually. Some years slower, some
faster.
By 2023 the population of the PMA is projected to be about 31,656.
This projection is based on assumptions about the growth in the housing inventory, average
household size and the housing vacancy rate.
Our projection is for a net annual gain of 627 housing units in the PMA between 2018 and 2023.
It represents a large increase over the 2010 to 2018 average, which was 349 units per year.
By 2023 the housing inventory is projected to be 14,656 units. The housing vacancy rate has
been rather high in the area. It was about 14% in 2010 and estimated to be 13% in 2018. The
projected vacancy rate is 13.4%, which implies 1,970 vacant units. The vacant units include
unsold homes and several hundred second homes (classified as seasonally vacant). This leaves
12,686 units occupied by year-round households. The average household size is projected to be
2.49 persons per household. That implies a household population of 31,627 persons. Adding the
small group quarters population of 29 yields the total 2023 population of 31,656.
Table 2-1 summarizes historical and projected change in key demographic factors for the PMA.
Households and other residential sources within the primary market area had the potential to
generate demand for about 144,500 square feet of self-storage space this year (2018).
The housing-based demand for self-storage in the subject site’s primary market area is analyzed
on Table 2-2. There are three types of housing-based demand:
Households (owners and renters)
People living in group quarters (dorms, senior housing, prisons)
Demand originating with owners of second homes
2-5STRATTON RESEARCH
Households are the primary source of demand, by far. Altogether, market area households may
have needed about 137,200 square feet of self-storage space in 2018. In the PMA about 12% of
all households are likely to use self-storage during the year, which is a little above the national
average.
Our calculation of household demand is benchmarked to the national pattern, with adjustments
made for the local market conditions. (See the Appendix for analysis of the national self-storage
market.)
• The Regional Adjustment is based on comparison of the local metro area supply ratio
with the national ratio. The North Port-Sarasota-Bradenton metro area has a supply ratio
of about 7.41 square feet per person, compared with 7.06 nationally, according to the
Self-Storage Almanac. This suggests we might want to adjust the national propensity
rates slightly upward, if at all, for the PMA. We have opted to make no adjustment in
this case.
• The Mobility Rate Adjustment is greater than 1.0 when the PMA household mobility rate
is significantly higher than the metro area mobility rate. In this case the mobility rate in
the PMA will be much higher the metro area rate due to the volume of housing
development expected.
• The average unit size might be adjusted in cases of very low average household size or
other observed local conditions. We have made a slight downward adjustment.
About 90% of the household demand originates with homeowners. On average, homeowners
use larger storage units than renters.
The group quarters’ population in the PMA is very low. We estimate the demand form this
source to be about 200 square feet. The owners of seasonal housing have a projected demand for
only about 7,100 square feet.
The three sources create an estimated demand for 144,500 square feet this year. Table 2-2 shows
total demand for 2018 and 2023, by which time the residential-based demand is projected to
increase to 197,200 square feet due to growth in the number of households.
There are about 330 business establishments and institutions located in the PMA at this time.
That’s a population per establishment ratio of 75:1, which is very high. The corresponding
national ratio is 28:1. The residents of the PMA largely have to go elsewhere for work, shopping
and services. (This will no doubt change over time.)
Altogether the existing establishments employ about 2,188 workers. Retail trade is a major
employer in the area, accounting for 32% of all the local jobs. Agriculture and construction
account for relatively high shares of all jobs, as do miscellaneous services. See Table
2-3 for employment and establishment data.
2-6STRATTON RESEARCH
Businesses located in the primary market area currently generate demand for about 14,400
square feet of self-storage space.
The analysis of the business demand is shown on Table 2-4. The propensity to use self-storage
varies by industry.
Altogether, about 13% of the establishments in the area can be expected to use self-storage.
For more on the methodology involved please refer to the Notes on Methodology at the end of
this section, as well as the tables cited.
The total gross demand for self-storage space within the primary market area is estimated to be
176,600 square feet this year.
Gross demand reflects analysis of all the sources of demand for self-storage within the subject
site’s primary market area. It includes the effective demand generated by households and
businesses plus an allowance for normal vacancy needed to keep the market functioning
smoothly. See Table 2-5, where the data-points are 2018 and 2023.
The effective demand is the demand that is the sum of residential demand and demand that
originates with businesses. The latter represents about 9% of the total demand, which is well
below the national average of 18%. Relative to the population there are few businesses in the
area.
Gross demand includes an allowance for normal annual average vacancy, at a rate of 10%. A
certain amount of vacant space is needed in a dynamic market.
The estimated gross demand equates to 7.16 square feet per person in 2018, which is close to
average. It would be higher is there was more business demand. By 2023 demand could grow to
7.87 square feet per person due to the expected growth in both household and business demand
in the area.
The demand for climate-controlled space is estimated to be about 95,500 square feet this year.
The demand for climate-controlled storage space is difficult to pinpoint. In the U.S. about 25% to
35% of the total demand is captured by climate-controlled space. But demand varies a by region
and it has been rising everywhere as customers get more familiar with its benefits.
The division of demand between indoor, climate-controlled storage and standard storage is based
on several factors but the main ones are local climate, price and access. The climate in the
Parrish area gets very hot and humid in the summer though it is mild in the winter. Climate
control is desirable as much for personal comfort as for the protection of the stored goods. And
there is a growing consumer preference for this amenity as more of it is built.
2-7STRATTON RESEARCH
The demand for climate control is also linked to household income since there is usually a
premium price for this amenity. Table 2-5A shows analysis of the potential demand for climate
control based on household incomes and types of businesses. It is based on surveys recently
done for the Self Storage Association. The probability that a household will use climate control
increases with income. National propensities to use climate control are modified for the analysis
of the local market.
For the Parrish PMA, we have assigned fairly strong shares of demand in each income range to
climate control. Demand has been shifting in favor of climate control across the country for
several years. It is cleaner and more secure than drive-up storage and more and more is being
built.
The analysis indicates that about 57% of household customers and about 29% of businesses
customers are apt to use climate control. The weighted average is 54% of total demand. About
96% of the climate-control demand is likely to come from households and 4% from businesses.
The demand for climate control is projected to be about 95,500 square feet this year. The
demand is projected to rise to 148,200 square feet by 2023 due to growth in demand and a small
increase of the climate control market share. See Table 2-5.
2-8STRATTON RESEARCH
NOTES ON METHODOLOGY
We recently revised our analysis of the U.S. market to establish benchmarks for the analysis of
local market areas using recent data on population, households and the total self-storage supply.
We relied on data from the US Census Bureau, the Self Storage Almanac and the Self Storage
Demand Study. The data are not as good as one would hope for, for various reasons. We have
made our best effort to create the national benchmark with what is available. See the Appendix
for our analysis.
Conclusions:
About 82% of the total demand comes from residential sources (households, people in group
quarters (including students and military) and owners of second homes) and 18% is from
business and institutions.
In the residential demand segment, about 90% originates with households. The probability that a
household is renting self-storage is 13.5% (also called the propensity of market penetration rate).
While renters used to have a much greater propensity rate than homeowners, the gap has closed
in recent years. Our best estimate is that owners have a 12.5% probability and renters a 15.3%
probability. The average residential unit size is about 120 square feet, with homeowners
typically needing a larger unit than renters.
The propensity for businesses to use self-storage is somewhere around 15% to 16%, based on
surveys and analysis of the whole pattern of residential and commercial demand. On average,
businesses use 1.5 units. The average amount of space rented is 150 square feet, per recent
studies conducted for the Self Storage Association, updated for this analysis.
The analysis presented on Table 2-2 is based on the propensity for households (owners and
renters), residents of group quarters and owners of second or seasonal homes, to use self-storage.
The analysis of the local market starts with the demographic data presented in Table 2-1.
2-9STRATTON RESEARCH
The local propensity rates are based on the national propensity rates, which have been rising.
The national rates are adjusted for the local region and for the local mobility rate. The South and
West exhibit higher propensities for using self-storage than the national average. In the
Northeast, the propensities are lower than the national average. In the Midwest, they are near the
average. We base our adjustment factor in part on a comparison of the existing square feet per
person in the local metropolitan area with the national average.
The local market area’s household mobility rate is also taken into consideration. If it is
significantly above the mobility rate of the MSA or the region, an adjustment factor of greater
than 1.0 is applied. If the local mobility rate is significantly below the rates of the MSA or
region than a factor of less than 1.0 is applied. This process fine-tunes the local market area
within the context of the surrounding market area.
The propensity rates are multiplied times the number of owners and renters to obtain an estimate
of the number of users of self-storage in the market area. This number is then multiplied times
the average unit size that each group tends to rent, which is based on analysis of the national
market. Adjustments to the average unit sizes may also be made, with respect to local patterns.
The same approach is made with group quarters residents and seasonal housing. The demand
originating with each source (households, group quarters and seasonal housing) is then summed
to get the total residential-based demand.
Here is a brief description of each of the three residential demand market segments:
• Households
Household demand is based on the number of owner and renter households times their
propensities to use self-storage. Base propensities are derived for the US as a whole.
These are then modified to suit local conditions. Propensity times the number of
households yields the probable number of customers. This estimate is then multiplied by
the average unit size (derived from analysis of the national market) to yield total demand.
• Group quarters
The group quarters population is multiplied by the propensity ratio (the US ratio,
modified for the local market) to obtain the probable number of customers, which is then
multiplied by the average unit size to obtain the total demand.
• Seasonal housing
The same approach is used. The number of seasonal housing units is multiplied by the
propensity rate to get the potential number of customers, which is then multiplied by the
average unit size.
2-10STRATTON RESEARCH
Here is a summary of the analysis of business-based demand presented on Table 2-3:
The distribution of the businesses located in the market area by type of industry is shown on
Table 2-3. Each industry has an expected propensity to use self-storage. These were derived for
the US and then modified for the local area. The modification is based on observations about the
types of businesses in the area and their size. Large businesses with lots of real estate and
employees may be less apt to use self-storage than smaller businesses.
The propensity ratio times the number of establishments yields the probable number of
customers in each industry. This number is then multiplied by the average amount of space that
a business is likely to rent. The industries are all summed to get the total establishment-based
estimate of demand.
2-11STRATTON RESEARCH
PRIMARY MARKET AREA
HIGHWAY 301 SITE
PARRISH, FLORIDA
The primary market area is a 3-mile radius around the site.TABLE 2-1
BASIC DEMOGRAPHICS OF THE PRIMARY MARKET AREA*
HIGHWAY 301 SITE
PARRISH, FLORIDA
Avg. Annual Change
2000 2010 2018
Item 2000 2010 2018 2023 2010 2018 2023
Total persons 8,381 17,967 24,682 31,656 959 839 1,395
In households 8,373 17,950 24,659 31,627 958 839 1,394
In group quarters 8 17 23 29 1 1 1
HPR** 99.9% 99.9% 99.9% 99.9%
Total occupied 3,859 7,532 10,003 12,686 367 309 537
Owners 3,627 6,826 9,239 11,337 320 302 420
Renters 232 706 764 1,350 47 7 117
Renter ratio 6.0% 9.4% 7.6% 10.6%
AHS 2.17 2.38 2.47 2.49
All housing units 4,490 8,730 11,521 14,656 424 349 627
1 unit, detached 3,085 5,998 7,915 10,469 291 240 511
1 unit, attached 180 349 461 586 17 14 25
2-4 0 0 0 0 0 0 0
5 or more 13 26 35 344 1 1 62
Mobile homes 1,212 2,357 3,111 3,257 114 94 29
Vacant units 631 1,198 1,518 1,970 57 40 90
Vacancy rate 14.1% 13.7% 13.2% 13.4%
Seasonally vacant 246 479 632 804 23 19 34
Year-round housing vacant 385 719 886 1,166 33 21 56
Household mobility rate 20.2% 20.4% 20.3% 20.4% n/a n/a n/a
* Defined as the region within a 3.0-mile radius. See Section II. See map.
** Household population ratio, which is pct. of total population living in households rather than group quarters.
Source: ESRI and Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-1TABLE 2-1A
ADDITIONAL DEMOGRAPHICS
HIGHWAY 301 SITE
PARRISH, FLORIDA
2018 ESTIMATES
Market Sarasota United
Item Area Metro States
Median household income $60,675 $54,174 $58,100
HH income < $25,000 16.4% 20.1% 20.6%
HH income $25,000-$49,999 21.8% 25.4% 22.1%
HH income $50,000-$99,999 36.9% 31.3% 30.1%
HH income $100,000 or more 24.9% 23.2% 27.2%
Average household income $82,796 $79,469 $72,840
Median age 47.6 52.5 38.3
Percent of population under 18 20.4% 16.2% 22.2%
Average household size 2.47 2.24 2.59
Renter ratio 7.6% 26.6% 37.0%
Household mobility rate 20.3% 11.5% 9.0%
Marital status:
Never married 19.9% 24.2% 33.9%
Married 64.7% 53.5% 49.4%
Divorced & widowed 15.4% 22.3% 16.7%
Population by race:
White alone 87.5% 84.8% 69.9%
Black alone 5.7% 6.6% 12.9%
Asian alone 2.6% 1.9% 6.4%
All other races 4.2% 6.7% 10.8%
Hispanic origin (any race) 9.3% 12.9% 19.8%
Educational attainment:
No HS diploma 7.2% 9.2% 12.2%
High school graduate 28.4% 29.7% 27.0%
Some college/associate degree 35.5% 29.1% 29.0%
Bachelor's degree 19.6% 19.2% 19.6%
Master's degree+ 9.3% 12.8% 12.2%
Population enrolled in college/university:
Undergraduate 1,153 25,618 19,029,297
Graduate school 133 5,124 3,990,014
Undergard & grad % of popul 5.8% 4.2% 7.5%
Type of employment:
White collar 67.0% 60.1% 60.6%
Services 16.5% 22.5% 18.4%
Blue collar 16.5% 17.4% 21.0%
Population in Armed Forces (est.) 74 2,401 2,310,621
Pct of population 0.3% 0.3% 0.7%
Source: ESRI and Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-1ATABLE 2-1B
RESIDENTIAL DEVELOPMENT PIPELINE
PARRISH MARKET AREA
PMA Total PMA
Project Name Radius Direction Impact Units Units
Forest Creek 0-1 SE 100% 367 367
Willow Bend 0-1 NW 100% 279 279
Harris Ranch 0-2 W 100% 1,163 1,163
Silverleaf 0-2 SW 100% 714 714
Aberdeen Meadows 1-2 SW 100% 200 200
Wildcat Preserve 1-2 NE 100% 242 242
Copperstone 1-2 N 100% 622 622
Creekside Preserve 2-3 W 80% 403 322
River Wilderness Ph 3 2-3 S 100% 177 177
Cross Creek 1-3 SE 100% 338 338
Gamble Creekside Estates 2-3 NE 100% 161 161
Parrish Plantation 2-3 NE 100% 488 488
Morgans Glen 2-3 NE 100% 286 286
Summerwoods 2-3 NE 100% 562 562
Canoe Creek 2-4 SE 50% 896 448
Parrish Lakes Phase 1 2-4 NW 30% 1,500 450
Amazon South* 2-4 NE 25% 2,000 500
Twin River 2-4 SE 15% 544 82
Haval Farms* 3-4 NE 0% 3,842 0
Total 14,784 7,401
Source: Manatee County: North county development projects. PMA impact estimated
by Stratton Research.
Parrish FL SS2023-2.1.1.xlsxHousing Table 2-1BSTRATTON RESEARCH
PLANNED DEVELOPMENTS
PARRISH, FLORIDA AREA
Showing 1- and 2-mile radii around the subject site.TABLE 2-2
RESIDENT-BASED DEMAND
FOR SELF STORAGE
PRIMARY MARKET AREA
HIGHWAY 301 SITE
PARRISH, FLORIDA
2018 2023
Item Owners Renters Total Owners Renters Total
HOUSEHOLD-BASED DEMAND:
Number of households 9,239 764 10,003 11,337 1,350 12,686
Propensity rate analysis:*
National rates 10.6% 14.8% -- 10.6% 14.8% --
Regional adjustment 1.00 1.00 -- 1.00 1.00 --
Mobility rate adjustment 1.10 1.00 -- 1.18 1.07 --
LOCAL propensities 11.7% 14.8% 11.9% 12.5% 15.8% 12.8%
Prospective users of self storage 1,077 113 1,190 1,414 213 1,627
Average unit square footage 116 106 115 116 106 115
Projected household-based demand (sq. feet)** 125,200 12,000 137,200 164,400 22,600 187,000
GROUP-QUARTERS-BASED DEMAND:
Group quarters population -- -- 23 -- -- 29
Propensity -- -- 10.7% -- -- 10.7%
Prospective users of self storage -- -- 2 -- -- 3
Average unit square footage -- -- 104 -- -- 104
Projected demand (sq. feet) -- -- 200 -- -- 300
SEASONAL-HOUSING-BASED DEMAND:
Seasonal housing units -- -- 632 -- -- 804
Propensity -- -- 10.7% -- -- 10.7%
Prospective users of self storage -- -- 68 -- -- 86
Average unit square footage -- -- 104 -- -- 115
Projected demand (sq. feet) -- -- 7,100 -- -- 9,900
TOTAL RESIDENT-BASED DEMAND 144,500 197,200
* The local propensity to use self storage is based on the national rates, multiplied by a regional adjustment and a mobility rate
adjustment. Households are much more apt to use self storage in some regions, such as the South and the West, than in others,
such as the Northeast. Markets with a higher than average mobility rate also exhibit higher than average demand for self
storage.
** Projected demand is the number of prospective users of self storage times the average unit square footage.
Source: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-2TABLE 2-3
BUSINESS ACTIVITY
PRIMARY MARKET AREA
HIGHWAY 301 SITE
2018
Average Number of
Establishments Employment Employees/Establishment
Industry Number Percent Number Percent PMA USA
Agriculture & Mining 22 6.7% 202 9.2% 9.2 8.2
Construction 46 13.9% 134 6.1% 2.9 8.0
Manufacturing 9 2.7% 47 2.1% 5.2 32.3
Transp.,Communications & Util. 18 5.5% 63 2.9% 3.5 14.2
Wholesale Trade 10 3.0% 35 1.6% 3.5 15.5
Retail Trade 51 15.5% 708 32.4% 13.9 12.9
Fin., Insur. & Real Est. (FIRE) 29 8.8% 158 7.2% 5.4 9.2
All services 118 35.8% 786 35.9% 6.7 9.8
Professional & technical svcs 28 8.5% 77 3.5% 2.8 9.8
Health services 20 6.1% 169 7.7% 8.5 24.6
Educational services 3 0.9% 58 2.7% 19.3 44.7
Other Services 67 20.3% 482 22.0% 7.2 9.4
Government 4 1.2% 50 2.3% 12.5 23.2
Unclassified establishments 23 7.0% 5 0.2% 0.2 0.8
Total 330 100.0% 2,188 100.0% 6.6 13.1
RELATIVE INDICES:* Establish- Total Estab.
ments Employ Size
Agriculture & Mining 2.73 6.04 1.1
Construction 2.13 1.54 0.4
Manufacturing 0.80 0.26 0.2
Transp.,Communications & Util. 1.31 0.64 0.2
Wholesale Trade 0.82 0.37 0.2
Retail Trade 0.74 1.57 1.1
Fin., Insur. & Real Est. 0.93 1.09 0.6
All services 0.89 0.83 0.7
Professional & technical svcs 0.94 0.52 0.3
Health services 0.98 0.67 0.3
Educational services 0.36 0.31 0.4
Other Services 0.90 1.37 0.8
Government 0.33 0.35 0.5
Unclassified establishments 1.27 0.71 0.3
* For each factor, the index value shows how the local industry compares with the nation. All values greater than 1.10
demonstrate a local strength relative to national conditions.
** Does not include military
Source: ESRI and Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-3TABLE 2-4
ESTABLISHMENT DEMAND
PRIMARY MARKET AREA
HIGHWAY 301 SITE
PARRISH, FLORIDA
Ministorage Users** Estimated Average Total
Number of National Local Ministorage Demand Demand
Industry Establishments* Average Estimate Users Sq. Feet Sq. Feet
Agriculture & Mining 22 3.3% 3.3% 1 342 342
Construction 46 5.0% 5.0% 2 342 684
Manufacturing 9 24.4% 36.6% 3 342 1,026
Transp.,Communications & Util. 18 17.6% 26.4% 5 342 1,710
Wholesale Trade 10 10.6% 15.9% 2 342 684
Retail Trade 51 5.4% 5.4% 3 342 1,026
Fin., Insur. & Real Est. 29 13.0% 13.0% 4 342 1,368
All services
Professional & technical svcs 28 16.4% 24.6% 7 342 2,394
Health services 20 19.2% 24.0% 5 342 1,710
Educational services 3 13.0% 13.0% 0 342 0
Other Services 67 9.1% 9.1% 6 342 2,052
Government 4 15.5% 15.5% 1 342 342
Unclassified establishments 23 9.7% 12.6% 3 342 1,026
Total (demand is rounded) 330 12.7% 42 343 14,400
Non residential customers 42
Average # units per customer*** 1.8
Units in demand 76
Average unit size*** 190
Square feet in demand 14,364
Average SF demand/customer 342
* TABLE 2-3
** National average is based on 2017 Self Storage Demand Study by the Self Storage Association. Local estimate is based
on analyst's judgement.
*** Based on 2017 Self Storage Demand Study by the Self Storage Association. Modified for local market.
Source: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-4TABLE 2-5
GROSS DEMAND
AND DEMAND BY PRODUCT SEGMENT
PRIMARY MARKET AREA
HIGHWAY 301 SITE
Average
Item Annual Compound
Detail 2018 2023 Change Rate
Effective demand:
Resident-based demand Table 2-2 144,500 197,200 10,540 6.4%
Business demand Table 2-4 14,400 27,000 2,520 13.4%
Total effective demand 158,900 224,200 13,060 7.1%
+ Allowance for normal vacancy 10% 17,700 24,900 1,440 7.1%
= Total gross demand* 176,600 249,100 14,500 7.1%
Residential share 90.9% 88.0%
Business share 9.1% 12.0%
Demand by product segment:**
Standard space 81,100 100,900 3,960 4.5%
Climate control 95,500 148,200 10,540 9.2%
TOTAL 176,600 249,100 14,500 7.1%
* Sq. feet per person
Primary market area (demand) 7.16 7.87
Metro area (demand) 8.84 8.96
Florida (supply) 7.00 --
USA (supply) 7.06 --
* Sq. feet per household:
Primary market area (demand) 17.7
Metro area (demand) 20.1
USA (supply) 21.8
** Based on the expected local pattern, which is based on climate and national trends..
National pattern 2018 2023
Standard space 88% 77%
Climate control 20% 23%
Expected local pattern
Standard space 46% 41%
Climate control 54% 59% > See TABLE 2-5A
Source: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-5TABLE 2-5A
ANALYSIS OF CLIMATE-CONTROL DEMAND
PRIMARY MARKET AREA
HIGHWAY 301 SITE
Climate- Climate-
RESIDENT-BASED DEMAND All Storage Control Control
Household Income Range Households Customers* Propensity** Customers
< $25,000 1,640 179 10% 18
$25,000-$49,999 2,181 279 35% 98
$50,000-$99,999 3,691 427 70% 299
$100,000 or more 2,491 305 85% 259
Total 10,003 1,190 57% 674
Climate- Climate-
BUSINESS-BASED DEMAND All Storage Control Control
Industry Establishments Customers* Propensity** Customers
Agriculture 22 1 13% 0
Construction 46 2 13% 0
Manufacturing 9 3 20% 1
Transp.,Communications & Util. 18 5 22% 1
Wholesale Trade 10 2 28% 1
Retail Trade 51 3 28% 1
Fin., Insur. & Real Est. 29 4 33% 1
Legal services 28 7 39% 3
Health services 20 5 50% 2
Educational services 3 0 39% 0
Other Services 67 6 22% 1
Government 4 1 17% 0
Nonclassifiable 23 3 33% 1
Total 330 42 29% 12
SUMMARY OF CLIMATE-CONTROL DEMAND:
Climate- Climate-
Total Control Control
Market Segment Demand Propensity Demand
Resident-based demand 144,500 56.6% 81,811
Business demand 14,400 28.6% 4,114
Total effective demand** 158,900 85,925
+ Allowance for normal vacancy 10% 9,575
= Total gross demand* 176,600 54.1% 95,500
Residential share 95.2%
Business share 4.8%
* Based on national propensities by income range
** National propensities modified for local conditions
Source: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 2-5ASTRATTON RESEARCH
SECTION III
THE COMPETITIVE ENVIRONMENT
There are only six potentially competitive self-storage facilities located within or near the
primary market area.
The site is located on U.S. Highway 301 about four miles east of I-75 in Parrish.
The primary market area (PMA) is defined as the region within a three-mile radius of the site.
There are only three existing facilities within the PMA. There are three more within 5.1 to 6.6
miles that might be slightly competitive for a share of the demand in the PMA.
We are not aware of any new facilities under construction or planned in the competitive area at
this time.
The existing potentially competitive facilities have a combined total of about 332,600 square feet
of rentable self-storage space.
The average facility size is 55,400 square feet and the median is 42,700 square feet. Sizes range
from 15,300 to 123,970 square feet.
The average occupancy rate of the stabilized facilities was about 91% in August.
Today, about 49% of all the space in the market area is climate controlled. Only one of the
surveyed facilities lacks climate control. See Table 3-1 for summary data.
3-1STRATTON RESEARCH
The following chart summarizes the competitive supply by distance from the subject site:
Miles Facilities Total SF Climate % Climate
1 0 0 0 0.0%
2 1 39,790 33,240 83.5%
3 3 96,720 46,240 47.8%
6 4 140,540 58,320 41.5%
7 6 332,590 161,650 48.6%
The nearest facility is Parrish Storage, built in 2012 some 1.4 miles to the northeast of the subject
site on Highway 301. It contains almost 40,000 net rentable square feet, including some climate
controlled space in a two-story building. It is almost completely leased up and the rents are the
highest in the area. They are planning to build a new RV and boat storage facility a little further
to the north on Highway 301.
There are two facilities in Parrish to the southwest of the subject site. Xpress Storage is located
just off of Highway 301 some 2.4 miles away. About one-third of the 362 units are climate
controlled. Rents are about average and it is about 98% occupied.
Ellenton Commons Mini Storage is located nearby. It consists of a single building behind a strip
shopping center. All of the units appear to be very large, about 450 square feet. It primarily
serves businesses and possibly some vehicle storage. Not much of a self-storage competitor.
The next-nearest facility is Xpress Storage on Portal Crossing in Bradenton, some 5.1 miles to
the south of the subject site. It could attract some customers out of the southern part of the PMA
via Fort Hamer Road. But minimally competitive if at all.
Two facilities on Highway 301 west of I-75 could also conceivably attract customers from the
west side of the PMA. They are more than six miles away, though, so the competitive impact
will be minimal. They are Hide-Away Storage and Simply Self Storage. The latter is the largest
facility in the area, by far.
See the map that follows this text for facility locations relative to the site and the PMA.
About 75% of the space in the are has been built in the area since 2009.
One new facility was built that year and three more between 2012 and 2014.
The following chart shows how the supply has changed in the region of the subject site over the
years (dated by original completion dates of the different facilities):
3-2STRATTON RESEARCH
Square Feet Added by Period
Primary Market Area
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0STRATTON RESEARCH
About 54% of the existing competitive supply is climate controlled.
The competitive supply of climate-controlled spaced currently amounts to about 37,000 square
feet. The competitive supply of standard space totals 32,200 square feet. See Table 3-2A.
The primary climate control competitor is Parrish Storage, accounting for 21,500 square feet.
The Xpress Storage in Parrish and Simply Self Storage in Palmetto are also somewhat important
competitors for climate controlled demand.
Rents are detailed on Tables 3-3 through 3-4B.
The rents we show reflect what they were in early September and were collected on websites and
third-party sources (Reis, Union Realtime). Table 3-3 shows website rents by unit size for
standard space at the existing facilities. The average rent across the region for a 10x10 without
climate control is $132 per month. Asking rents range from $118 to $160, with the median at
$125. The Class A average is $136.
Climate-control rents are shown on Table 3-3A. The average for a 10x10 unit is $177. The
range is $162 to $192 and the median is $177. The Class A average is also $177. The highest
quoted rent is at Parrish Storage. The lowest is at Simply Self Storage in Palmetto.
Rent premiums for climate-controlled space are around 30% or more currently, as Table 3-3B
shows.
Tables 3-4 and 3-4A detail estimated rents per square foot at all the competitive facilities. The
tables also show our estimate of the overall rent per square foot at each facility. In the absence
of detailed unit mix data this is necessarily a rough estimate, based on the estimated average unit
size at each facility.
Several of the facilities quote web rates that are discounted from street rates. The average
discount for climate control rents is 12% for ground floor units and 10% for upper floor units.
Rents for upper floor units are discounted about 25% to 30% from ground floor rents.
See Table 3-5 through 3-5B for rent discounts.
3-4STRATTON RESEARCH
PRIMARY MARKET AREA & COMPETITION
HIGHWAY 301 SITE
PARRISH, FLORIDA
The primary market area is the region within a 3-mile radius of the site.TABLE 3-1
POTENTIALLY COMPETITIVE SELF-STORAGE FACILITIES
HIGHWAY 301 SITE
PARRISH, FLORIDA
Estimated Est.
Approx Miles Storage Units Leasable 10x10 Rent Occu-
Map Year From Climate Sq. Feet Climate pancy Quality
Quad Code Facility Name Address City Zip Opened Site Total Controlled (Total) Standard Controlled Rate Rating
aa a b c d e f g h i j k l
NE 80 Parrish Storage 12123 US 301 N Parrish 34219 2012 1.4 346 289 39,790 $160 $192 97% A-
SW 81 Xpress Storage 8709 Old Tampa Rd Parrish 34219 2013 2.4 362 113 41,630 $134 $184 98% A-
SW 82 Ellenton Commons Mini Storage 8201 US 301 N Parrish 34219 1996 2.6 34 - 15,300 -- -- 90% C
SE 61 Xpress Storage 10415 Portal Crossing Bradenton 34212 2014 5.1 381 105 43,820 $124 $169 88% A-
SW 83 Hide Away Storage 2900 US 301 N Ellenton 34222 1982 6.1 592 249 68,080 $118 -- 91% B
SW 63 Simply Self Storage 2100 US 301 Palmetto 34221 2009 6.6 1,127 679 123,970 $125 $162 88% A
TOTAL 6 2,842 1,435 332,590 $132 $177 91%
Subtotal by quality: A 2,216 1,186 249,210 $136 $177 91% 4
B 592 249 68,080 $118 -- 91% 1
C 34 0 15,300 -- -- 90% 1
UNDER-CONSTRUCTION: d B f g h
None known 0.0 0 0 0 n/a n/a New 0 A
TOTAL 0 0 0 0
PLANNED FACILITIES: a d B f g h i Probability l m
None known 0.0 0 0 - NEW 100% 0 A
TOTAL 0 0 0 0
Abbreviations: LU = In lease-up. e= Estimated occupancy
ADD = Addition
#REF!
SOURCE: Stratton Research. #REF!
Parrish FL SS2023-2.1.1.xlsx Table 3-1TABLE 3-2
COMPETITIVE SELF-STORAGE SUPPLY
HIGHWAY 301 SITE
PARRISH, FLORIDA
Total
Leasable Competitive Miles Competitive Impact* on Total
Map Square Area** From Primary Market Area Effective Market Quality Occup
Code Facility Name Feet 80% Site Overlap Adjustment Impact Supply Share Rating Rate
a b c d e f
80 Parrish Storage 39,790 31,800 1.4 71% 10% 81% 25,800 37.3% A- 0%
81 Xpress Storage 41,630 33,300 2.4 50% 10% 60% 20,000 28.9% A- 0%
82 Ellenton Commons Mini Storage 15,300 12,200 2.6 47% -10% 37% 4,500 6.5% C 0%
61 Xpress Storage 43,820 35,100 5.1 8% 2% 10% 3,500 5.1% A- 0%
83 Hide Away Storage 68,080 54,500 6.1 0% 10% 10% 5,500 7.9% B 0%
63 Simply Self Storage 123,970 99,200 6.6 0% 10% 10% 9,900 14.3% A 0%
TOTAL 332,590 266,100 26% 69,200 100.0%
Subtotal by facility quality rating:
A 249,210 199,400 -- -- -- 30% 59,200 85.5%
B 68,080 54,500 -- -- -- 10% 5,500 7.9%
C 15,300 12,200 -- -- -- 37% 4,500 6.5%
UNDER-CONSTRUCTION: a b c d
0 None known 0 0 0.0 100% 0% 100% 0 n/a A
TOTAL 0 0 n/a 0
PLANNED FACILITIES:*** a b c d
0 None known 0 0 0.0 100% 0% 100% 0 n/a A
TOTAL 0 0 n/a 0
* Competitive impact expresses the degree by which each facility in the area might compete with the proposed facility for a share of the demand in the primary market
area. Competitive impact is based on how much overlap there is between each facility's own primary market area and the subject site's primary market area. In
some cases an adjustment is made to this distance-defined impact. The adjustment is based on the competitive strength of each particular competitor, which is
related to visibility, features, services and other aspects of quality.
** An adjustment to Total Area to allow for the 20% to 30% (typically) of customers who come from outside of a facility's own primary market area.
*** Impact is also modified by the probability of development assigned in Table 3-1.
SOURCE: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 3-2TABLE 3-2A
CLIMATE-CONTROLLED SUPPLY
HIGHWAY 301 SITE
PARRISH, FLORIDA
Miles Total Percent Sq. Ft. Sq. Ft.
Map From Effective Climate Climate NON-Climate Quality Occupancy
Code Facility Name Site Supply Control Control Control Rating Rate
b e f g h I
80 Parrish Storage 1.4 25,800 84% 21,500 4,300 A- 97%
81 Xpress Storage 2.4 20,000 31% 6,200 13,800 A- 98%
82 Ellenton Commons Mini Storage 2.6 4,500 0% 0 4,500 C 90%
61 Xpress Storage 5.1 3,500 28% 1,000 2,500 A- 88%
83 Hide Away Storage 6.1 5,500 42% 2,300 3,200 B 91%
63 Simply Self Storage 6.6 9,900 60% 6,000 3,900 A 88%
TOTAL 69,200 53.5% 37,000 32,200
Subtotal by facility quality rating:
A 59,200 58.6% 34,700 24,500
B 5,500 41.8% 2,300 3,200
C 4,500 0.0% 0 4,500
UNDER-CONSTRUCTION: b e f g h
0 None known 0.0 0 0.0% 0 0 A
TOTAL 0 n/a 0 0
PLANNED FACILITIES:*** b e f g h
0 None known 0.0 0 0.0% 0 0 A
TOTAL 0 0.0% 0 0
NOTE: Competitive impact is based on location and access with respect to the trade area.
SOURCE: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 3-2ATABLE 3-3
RENTS* FOR STANDARD UNITS
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Map Standard 5x5 5x10 5x15 10x10 10x15 10x20 10x25 10x30 12x30
Code Facility Name Units Sq. feet> 25 50 75 100 150 200 250 300 360
Miles a b c d e f g h i
80 Parrish Storage 57 1.4 56 90 -- 160 -- -- -- -- --
81 Xpress Storage 249 2.4 -- 69 -- 134 -- 229 284 -- 370
82 Ellenton Commons Mini Storage 34 2.6 -- -- -- -- -- -- -- -- --
61 Xpress Storage 276 5.1 -- 64 -- 124 189 -- -- 294 --
83 Hide Away Storage 343 6.1 -- 64 -- 118 149 164 204 234 249
63 Simply Self Storage 448 6.6 -- -- -- 125 -- 213 -- -- --
Average 56 72 -- 132 169 202 244 264 310
Maximum 56 90 0 160 189 229 284 294 370
Minimum 56 64 0 118 149 164 204 234 249
Average by Quality A 56 74 -- 136 189 221 284 294 370
B -- 64 -- 118 149 164 204 234 249
C -- -- -- -- -- -- -- -- --
NOTE: In case of odd-sized unitswe have performed extrapolations to get estimated rents for standard sizes shown.
Numbers in italics are estimates.
SOURCE: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 3-3TABLE 3-3A
CLIMATE CONTROLLED RENTS*
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Map Climate 5x5 5x10 5x15 10x10 10x15 10x20 10x25 10x30
Code Facility Name Units Sq. feet> 25 50 75 100 150 200 250 300
Miles a b c d e f g h
80 Parrish Storage 289 1.4 -- -- -- 192 245 -- -- --
81 Xpress Storage 113 2.4 64 -- -- 184 -- 349 -- --
82 Ellenton Commons Mini Storage 0 2.6 -- -- -- -- -- -- -- --
61 Xpress Storage 105 5.1 -- 94 -- 169 -- 299 -- --
83 Hide Away Storage 249 6.1 -- -- -- -- -- -- -- --
63 Simply Self Storage 679 6.6 57 89 -- 162 -- 276 344 --
Average 61 92 -- 177 245 308 344 --
Maximum 64 94 -- 192 245 349 344 --
Minimum 57 89 -- 162 245 276 344 --
Average by Quality A 61 92 -- 177 245 308 344 --
B -- -- -- -- -- -- -- --
C -- -- -- -- -- -- -- --
NOTE: In case of odd-sized unitswe have performed extrapolations to get estimated rents for standard sizes shown.
Numbers in italics are estimates.
SOURCE: Stratton Research.
Parrish FL SS2023-2.1.1.xlsx Table 3-3ATABLE 3-3B
CLIMATE CONTROL PREMIUMS
FACILIITIES WITH BOTH STANDARD AND CLIMATE CONTROL IN EACH SIZE
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Map 5x5 5x10 5x15 10x10 10x15 10x20 10x25 10x30
Code Facility Name miles 25 50 75 100 150 200 250 300
i
80 Parrish Storage 1.4 -- -- -- 20% -- -- -- --
81 Xpress Storage 2.4 -- -- -- 37% -- 52% -- --
82 Ellenton Commons Mini Storage 2.6 -- -- -- -- -- -- -- --
61 Xpress Storage 5.1 -- 47% -- 36% -- -- -- --
83 Hide Away Storage 6.1 -- -- -- -- -- -- -- --
63 Simply Self Storage 6.6 -- -- -- 30% -- 30% -- --
Average -- 47% -- 31% -- 41% -- --
Average by quality: A 8% 23% n/a 30% 30% 39% 21% n/a
B n/a n/a n/a n/a n/a n/a n/a n/a
C n/a n/a n/a n/a n/a n/a n/a n/a
Average Rent/Type by Unit Size
400
350
300
250
Rent/Month
200
150
100
50
0
25 50 75 100 150 200 250 300
Unit SF
Standard Climate Control
Parrish FL SS2023-2.1.1.xlsx Table 3-3BTABLE 3-4
STANDARD UNIT RENTS PER SQUARE FOOT
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Map Dimensions> Estimated 5x5 5x10 5x15 10x10 10x15 10x20 10x25 10x30
Code Facility Name Square feet> Overall* 25 50 75 100 150 200 250 300
Miles a b c d e f g h
80 Parrish Storage 1.4 1.53 2.24 1.80 -- 1.60 -- -- -- --
81 Xpress Storage 2.4 1.29 -- 1.38 -- 1.34 -- 1.15 1.14 --
82 Ellenton Commons Mini Storage 2.6 n/a -- -- -- -- -- -- -- --
61 Xpress Storage 5.1 1.24 -- 1.28 -- 1.24 1.26 -- -- 0.98
83 Hide Away Storage 6.1 1.15 -- 1.28 -- 1.18 0.99 0.82 0.82 0.78
63 Simply Self Storage 6.6 1.20 -- -- -- 1.25 -- 1.07 -- --
Average 1.28 2.24 1.44 -- 1.32 1.13 1.01 0.98 0.88
Maximum 2.24 1.80 -- 1.60 1.26 1.15 1.14 0.98
Average by Quality A 1.35 2.24 1.49 -- 1.36 1.26 1.11 1.14 0.98
B 1.15 -- 1.28 -- 1.18 0.99 0.82 0.82 0.78
C n/a -- -- -- -- -- -- -- --
* Rough estimate based on average unit size.
Source: Stratton Research
Rent/Square Foot/Month by Unit Size
Standard Units
2.50
2.00
Rent/SF/Month
1.50
1.00
0.50
0.00
25 50 75 100 150 200 250 300
Unit SF
Average Within 2 miles
Parrish FL SS2023-2.1.1.xlsx Table 3-4TABLE 3-4A
CLIMATE CONTROLLED RENTS PER SQUARE FOOT
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Map Dimensions> Estimated 5x5 5x10 5x15 10x10 10x15 10x20 10x25 10x30
Code Facility Name Square feet> Overall* 25 50 75 100 150 200 250 300
Miles a b c d e f g h
80 Parrish Storage 1.4 1.88 -- -- -- 1.92 1.63 -- -- --
81 Xpress Storage 2.4 1.75 2.56 -- -- 1.84 -- 1.75 -- --
82 Ellenton Commons Mini Storage 2.6 n/a -- -- -- -- -- -- -- --
61 Xpress Storage 5.1 1.61 -- 1.88 -- 1.69 -- 1.50 -- --
83 Hide Away Storage 6.1 n/a -- -- -- -- -- -- -- --
63 Simply Self Storage 6.6 1.54 2.28 1.78 -- 1.62 -- 1.38 1.38 --
Average 1.69 2.42 1.83 -- 1.77 1.63 1.54 1.38 n/a
Maximum 2.56 1.88 -- 1.92 1.63 1.75 1.38 --
Average by Quality A 1.75 2.42 1.83 -- 1.77 1.63 1.54 1.38 --
B n/a -- -- -- -- -- -- -- --
C n/a -- -- -- -- -- -- -- --
* Rough estimate based on average unit size.
Source: Stratton Research
1.69 2.42 1.83 ###### 1.77 1.63 1.54 1.38 ######
Rent/Square Foot/Month by Unit Size
Climate-Controlled Units
3.00
2.50
2.00
Rent/SF/Month
1.50
1.00
0.50
0.00
25 50 75 100 150 200 250 300
Unit SF
Average Within 2 miles
Parrish FL SS2023-2.1.1.xlsx Table 3-4ATABLE 3-5
CLIMATE CONTROL RENTS BY LOCATION AND TYPE
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Ground Floor Upper Floor
5x10 5x10 10x10 10x10 10x15 10x15 10x20 10x20 5x10 5x10 10x10 10x10 10x15 10x15 10x20 10x20
Map Facility Name Street Web Street Web Street Web Street Web Street Web Street Web Street Web Street Web
80 Parrish Storage 192 104 185
81 Xpress Storage 212 184 402 349
82 Ellenton Commons Mini Storage
61 Xpress Storage 109 84 195 169 344 299
83 Hide Away Storage 229 199 293 254
63 Simply Self Storage 99 89 180 162 307 276 70 64 126 113 161 145 232 209
Average of rents shown 104 87 204 181 293 254 351 308 70 84 126 149 161 145 232 209
Source: Stratton Research survey of rents.
Parrish FL SS2023-2.1.1.xlsx Table 3-5TABLE 3-5A
WEB RATE DISCOUNT
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Ground Floor Upper Floors
Map Facility Name 5x10 10x10 10x15 10x20 5x10 10x10 10x15 10x20
80 Parrish Storage
81 Xpress Storage -13% -13%
82 Ellenton Commons Mini Storage
61 Xpress Storage -23% -13% -13%
83 Hide Away Storage -13% -13%
63 Simply Self Storage -10% -10% -10% -9% -10% -10% -10%
Average -17% -12% -13% -12% -9% -10% -10% -10%
Source: Stratton Research survey of rents.
Parrish FL SS2023-2.1.1.xlsx Table 3-5ATABLE 3-5B
UPPER FLOOR DISCOUNT
HIGHWAY 301 SITE
PARRISH, FLORIDA
AUGUST 2018
Street Rates Web Rates
Map Facility Name 5x10 10x10 10x15 10x20 5x10 10x10 10x15 10x20
80 Parrish Storage -4%
81 Xpress Storage
82 Ellenton Commons Mini Storage
61 Xpress Storage
83 Hide Away Storage
63 Simply Self Storage -29% -30% -24% -28% -30% -24%
Average -29% -30% -24% -28% -17% -24%
Source: Stratton Research survey of rents.
Parrish FL SS2023-2.1.1.xlsx Table 3-5BSTRATTON RESEARCH
SECTION IV
NET DEMAND
AND ABSORPTION POTENTIAL
The self-storage market in the subject site's primary market area appears to have been
significantly under-supplied at the beginning of 2018.
The difference between demand and supply is called net demand. The supply estimate includes
the weighted square footage at the 23 facilities located in and around the primary market area.
Here’s what we see for the beginning of 2018:
Type of Space Demand Supply Net
Standard 81,100 32,200 48,900
Climate controlled 95,500 37,000 58,500
Total 176,600 69,200 107,400
Both the market for standard drive-up space and the market for climate-controlled storage appear
to be under-supplied.
Demand in the primary market area (PMA) is analyzed in Section II. The competitive impact of
the self-storage facilities serving the market area is analyzed in Section III.
In the absence of new construction net demand net demand will increase over the next few of
years.
4-1STRATTON RESEARCH
We are not aware of any planned new self-storage facilities in the area that would have an impact
on the PMA. (There is a new RV and boat storage facility planned, though.)
Assuming that this condition persists, here is our projection of net demand by type of space by
2021:
Type of Space Demand Supply Net
Standard 93,100 32,200 60,900
Climate controlled 127,000 37,000 90,000
Total 220,100 69,200 150,900
It still appears that there will be an ample amount of net demand by 2021 for up to two new
facilities in the area. And net demand is projected to grow after that.
By 2021, the total absorption potential at the subject site is projected to be about 96,300 square
feet—if no additional competitive space is added to the market area.
Here is the allocation by type of space:
Type of Space Sq. Feet
Standard 46,900
Climate controlled 66,300
Total 113,200
Our absorption estimate is based on capturing shares of three different sources of demand, as
shown on Table 4-2. The following discussion is based on the three sources of demand for
climate-controlled space:
• Net demand
The analysis on Table 4-1 shows net demand for 90,000 square feet of climate-controlled
by 2021. We estimate that an appropriate market share for the subject site will be 54% of
the net demand. The share is based on demand and available supply at one-mile increments
around the site, out to the extent of the PMA (Table 4-2A and discussion below.) This
yields 48,300 square feet of absorption potential.
• Competitive advantage
Storage customers come and go, and all storage facilities must constantly compete for new
customers. The turnover rate is about 20%. A new facility has the potential to capture a
share of the turnover by providing a new choice to customers. Our analysis assigns a 17%
share of this turnover to the subject site, which means that the site would absorb another
1,400 square feet of space from this source.
4-2STRATTON RESEARCH
• Demand from the secondary market area
The final source of absorption is customers from outside of the primary market area. This
could include businesses that find it convenient to store inventory or supplies locally or
households moving in or out of the area. This source could represent about 25% of the
customers attracted to the new facility. That’s another 16,600 square feet.
The three sources sum to 66,300 square feet, which is our Expected Case absorption projection
for climate-controlled space by 2021. The absorption potential for standard space uses the same
method and is also shown on Table 4-2.
We have also created High and Low absorption projections, which assume higher or lower
capture rates for each source of absorption. The Low Estimate for total absorption is 96,300
square feet while the High Estimate is 132,600 square feet.
Our absorption projection is fine-tuned by looking at demand and supply by distance from the
site.
A high market penetration rate should be possible within one mile of the site, even with
competition. The possibility of attracting customers generally diminishes as distance from the
site grows. So, the market penetration rate is lower in the region from one to two miles of the
site and would be much lower again further out.
Table 4-2A shows the supply/demand profile in 2018 and in 2021 by radius. Demand is
calculated in a one-mile and a two-mile radius, which is the extent of the site’s PMA in this case.
The 2021 demand is projected based on the expected growth within each radius. This is then
compared with the supply available to the market within each radius (weighted by the degree to
which each competitor’s own PMA overlaps the particular radius). The projections are also
segmented by type of space.
Here is the projected net demand in 2021 by radius and type of space around the site:
Market Segment 1-mile 2-mile 3-mile
Standard space 22,200 39,900 60,900
Climate-controlled space 28,300 57,600 90,000
Total 50,500 97,500 150,900
To get a better understanding of the site’s absorption potential we look at demand and supply by
band: 0 to 1 mile, 1 to 2 miles and 2 to 3 miles. See Table 4-2B. This approach considers net
demand, turnover demand and demand from outside of the primary market area as the three
sources of absorption. It also considers standard space and climate control separately.
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