{"id":3901,"date":"2019-02-05T12:54:38","date_gmt":"2019-02-05T19:54:38","guid":{"rendered":"https:\/\/blog.neighbor.com\/storage-blog\/?p=3901"},"modified":"2024-11-05T15:41:17","modified_gmt":"2024-11-05T22:41:17","slug":"the-storage-facility-managers-guide-to-occupancy-rates","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/the-storage-facility-managers-guide-to-occupancy-rates\/","title":{"rendered":"The Storage Facility Manager’s Guide to Occupancy Rates"},"content":{"rendered":"\n

The storage facility industry has continued to be a profitable business. Still, success isn’t guaranteed. Even a new built, well-managed storage unit isn’t perfect without attention to two things: occupancy rate and competitive prices.<\/p>\n

Storage occupancy rates are always fluctuating. Recently, trends of minimalism<\/a>, a slowing housing economy, and the increase in the number of self storage facilities being built have decreased occupancy rates. Construction costs for new facilities<\/a> were $2 billion in 2016, over $3.5 billion in 2017, and 2018 finished right under $5 billion.<\/p>\n

\"Storage<\/p>\n

As the market potentially slows and new competition emerges, it’s important for storage facility managers to develop a solid understanding of their occupancy rate as a measure of profitability.<\/p>\n

What is an Occupancy Rate?<\/h2>\n

A self storage occupancy rate is the measure of the usage of your storage facility. The most common metric is the ratio between the occupied units and total units. This is called the unit occupancy rate. For example, if your storage facility has 300 units and 225 are currently filled, then you have a unit occupancy rate of 75%. This number is also called the physical occupancy rate.<\/p>\n

The unit ratio is valuable in helping you get a quick glance at the health of your storage facility. No doubt that number is always on your mind as you interact with customers and plan your marketing. Did you know there are two other occupancy rates to know? They are square foot occupancy rate and economic occupancy rate. Both will give you deeper insight into your business health.<\/p>\n

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Can we pay you to store vehicles?<\/h2>\r\n <\/header>\r\n
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List your unused space<\/h3>\r\n

People are earning $1,000s per year from their garages and outdoor space.<\/p>\r\n <\/div>\r\n

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Approve your renters<\/h3>\r\n

You're in control. Approve who rents and the hours of access.<\/p>\r\n <\/div>\r\n

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Get paid monthly<\/h3>\r\n

Sit back and collect automatic payments each month.<\/p>\r\n <\/div>\r\n <\/section>\r\n