1. SELF STORAGE 2017 MARKET REPORT
New York Self Storage Association Investment Forum- January, 2017
Presented by: Chris Sonne

3. Self Storage WeBSITE
UBS Annual Self Storage Summit

6. REIT NOI GROWTH

7. SELF STORAGE TRENDS IN THE USA
UBS Annual Self Storage Summit

8. REIS REGIONS
UBS Annual Self Storage Summit

9. SELF STORAGE TRENDS IN THE WEST REGIONWA OR NV UT AZ CO CA
SELF STORAGE TRENDS IN THE WEST REGION
UBS Annual Self Storage Summit

10. SELF STORAGE TRENDS IN THE South Atlantic REGIONTN GA FL SC NC VA MD DE
SELF STORAGE TRENDS IN THE South Atlantic REGION
UBS Annual Self Storage Summit

11. SELF STORAGE TRENDS IN THE Midwest REGIONMO MN IL IN OH MI MO IA MN WI IL IN OH MI
SELF STORAGE TRENDS IN THE Midwest REGION
UBS Annual Self Storage Summit

12. SELF STORAGE TRENDS IN THE Northeast REGIONNY PA MD DE CT RI MA NJ
SELF STORAGE TRENDS IN THE Northeast REGION
UBS Annual Self Storage Summit

13. SELF STORAGE TRENDS IN THE SOUTHWEST REGIONTX OK
SELF STORAGE TRENDS IN THE SOUTHWEST REGION
UBS Annual Self Storage Summit

14. ANNUAL RETURNS BY PROPERTY SECTOR
UBS Annual Self Storage Summit

15. Self storage reit performance
UBS Annual Self Storage Summit

16. Self storage time series trends
Source: CoStar
UBS Annual Self Storage Summit

17. SELF STORAGE TRANSACTION ACTIVITY
Number of Transaction & Volume
Source: CoStar
UBS Annual Self Storage Summit

18. Self storage transaction activity
Top 10 States for 2015
Source: CoStar
UBS Annual Self Storage Summit

19. Portfolio sales
UBS Annual Self Storage Summit

20. CMBS Maturing loans
UBS Annual Self Storage Summit

21. 3.29% 10.9% $129.6 Billion CMBS 3.0 CMBS loan losses in 2008?
Loan losses between 1995 and 2015 on $1.3 trillion?
3.29%
CMBS loan losses in 2008?
10.9%
2017 & 2018 debt due?
$129.6 Billion
Source: TREPP, LLC

22. KEY INDICATORS
UBS Annual Self Storage Summit

23. Treasury Interest Rate & Self Storage Cap Rates
UBS Annual Self Storage Summit

24. BAND OF INVESTMENT
UBS Annual Self Storage Summit

25. MORTGAGE EQUITY

26. CAP RATE ANALYTICS

27. Cap/Yield Rate Sustainability
Market sentiment is uncertain as to the timing of the next economic downturn. However, the majority estimate the severity and length of a downturn will not be nearly as bad as The Great Recession. As the same time, the CMBS market is facing the Great Wall of debt or maturities in 2017 and Uncertainties such as these in the market can cause a loss of investor confidence. On the other hand, market perception is that self storage is recession resistant and many consider self storage a safe haven for investment. As a result, investor interest in the sector remains high and cap rate compression continues, albeit at a slow rate of decline.

28. THE LAWYER SLIDE
UBS Annual Self Storage Summit

29. NEW construction trends
UBS Annual Self Storage Summit

30. NEW construction trends
UBS Annual Self Storage Summit

31. NEW CONSTRUCTION FORECAST
2016: 570
2017: 910
2018: 400
UBS Annual Self Storage Summit

32. Resources TOP MARKETS – NEW STARTS New York Denver Phoenix Dallas
FW Dodge
STR
REIS
SSPQ
US Census
Survey Research
TOP MARKETS – NEW STARTS
New York
Denver
Phoenix
Dallas
Miami
Houston
Washington DC
Nashville
Chicago
Charlotte
MIAMI – NEW STARTS
STR
FW Dodge 43 14

33. TRADE AREA ANALYSIS – QUALITATIVE & QUANTITATIVE

34. TRADE AREA ANALYSIS - CONCLUSION

35. DISCOUNTED CASH FLOW
UBS Annual Self Storage Summit

36. DISCOUNTED CASH FLOW
UBS Annual Self Storage Summit

37. Transitions – From BearCub to Cal Bear
UBS Annual Self Storage Summit

38. Transitions – From BearCub to Cal Bear

39. QUESTIONS & ANSWERS
UBS Annual Self Storage Summit

40. For more information regarding this presentation please contact:
R. Christian Sonne, CRE, MAI, MRICS
Executive Vice President | National Self Storage Valuation Group Leader T F