The National Association of Real Estate Investment Trusts – REIT – released a statement in August of 2008 which said that self storage facilities were up in total returns by 17 percent for the year ending on July 22, 2008.  The association went on to name self storage the best commercial performer of any commercial real estate sector.  Not even apartment REIT complexes, which are benefitting from a housing slump and foreclosures, could top this figure. Total REIT apartment complexes jumped 16 percent for the same time period.

Self storage in St. Pete believes the National Association of Real Estate Investment Trusts news is great information for everyone in the self storage business, no matter where they are located. Demands for self storage have remained high despite growing fears over the housing markets downturn is what probably spurred on the double-digit returns in 08 after a dismal 25 percent drop in 07.

According to the REIT, the numbers are arrived at using measured returnable square feet per person, demand rose to an average of 6.12 sq. ft. at the end of 2007, up from 5.7 sq. ft in 2005. Some estimates are that more than two self storage facilities have been built each day over the past 50 years somewhere in the U.S. – which is a pace greater then McDonalds. A fund from operations (FFO) is a common metric calculation used to figure REIT performance and reflect the health of the asset class.  Up more than 11 percent, the FFO showed all four of the major REITs gained in the fourth quarter.

Self storage space in St. Pete knows that recent past performances is not necessarily a good indicator of what’s to come and the self storage industry faces its share of challenges. Construction loans for a self storage facility are in short supply. This caused a slight slow in the in the growth of the revenue from the first to the second quarter last year. A year ago, growth was in the 4 to 5 percent range, now it’s in the 2.5 to 3 percent area.