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The Importance of Occupancy Rates


Occupancy rate is the de facto key performance indicator in the self-storage industry. Reporting systems are designed to calculate the various measures of occupancy on a daily, weekly, or monthly basis. But why is occupancy rate so important and when does it matter most?

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While knowing occupancy provides a level of comfort and a measure of success for owners, it also becomes key to outside interests in a facility. Most importantly, analysts and investors use occupancy rate measurements as a predictor of cash flow when assessing properties for acquisition or those in a current investment portfolio. For them, it’s more than just an operating performance measurement. It is also a comparison of financial attractiveness of various real estate investments. It becomes key if you’re thinking about raising capital or even selling your business.


What you do today to improve occupancy rates can have long-term impact on the financial valuation of your properties should you ever consider an equity event. Boosting not only occupancy, but also tenancy days can drastically improve value. Being a great operator is important to maintaining occupancy, but being a great marketer is necessary as well to drive demand and reduce the impact of move-outs.


Are you doing enough on the marketing side of your business? If you’re thinking about selling or raising capital, now may be the time to boost your marketing efforts.


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