Explore

250911 Space Saver Meeting notes

Agenda 2

Agenda 2

Done

Topic

Notes

Date

Added by

Add a

atomicstoragegroup@gmail.com

⁠

to GBP

Thu, Jan 22

There are no rows in this table

⁠

Space Savers Facility Performance Update – Sep 2025

Leads & Conversions

10 leads MTD with 70% conversion (strong).

YTD: 255 leads, 62% conversion → 158 move-ins.

Move-Ins / Move-Outs / Net Rentals

August: 28 move-ins, 9 outs, +19 net.

September (through 9/10): 7 ins, 3 outs, +4 net.

YTD: 158 ins, 72 outs, +86 net.

Occupancy

Units: 50.3% | SF: 50.9%.

Economic occupancy: 53.2% (up from 48% in Aug).

+20 pts YoY (essentially doubled vs. 2024).

~32 units (7%) remain unrentable – focus area.

Revenue

MTD Sep: $9.9k | Aug: $17.4k.

YTD: $139k (vs. $74k full year 2024).

Revenue mix: $109k rent, $18k insurance, $12.5k fees.

Monthly run-rate: $16k–$18k steady in Q3.

Gross Potential vs. Actual

Potential: ~$30k/month vs. $15.9k actual.

Capturing 53% of potential (improved from 48% in Aug).

Customer Rate Increases

Oct 1, 2025: 55 tenants (~25% of base) getting +15% increases.

Projected to add several thousand in monthly revenue Q4.

Unit Mix & Pricing

Weak: 5x5 & 5x10 (35–47% occupied), 10x15 & 20x20 (33–37%).

Strong: 7x10 (85% full), 10x10 (72%). Customers paying above street.

Large units priced high vs. demand → need targeted marketing or promos.

Q3 Projection

Forecast: ~$52k revenue (record quarter).

+7% over Q2 ($48.8k).

+60% YoY vs. Q3 2024 ($32.2k).

⁠

Wins

Revenue nearly doubled YoY; $139k YTD vs. $74k 2024.

Occupancy hit 50% milestone (+20 pts YoY).

Strong lead conversion and ancillary capture (85% insurance).

Broad Oct 1 rate increase positions Q4 for growth.

Challenges / Q4 Focus

Half the facility still vacant; need occupancy push.

Underperforming unit sizes (5x5, 5x10, 10x15, 20x20).

Monitor tenant response to Oct 1 increases.

Bring 32 unrentable units online.

Balance rate optimization with occupancy growth.

⁠

Space Savers – (5811 Old Pascagoula Rd)

Lead Flow & Conversion

Month-to-date (MTD) lead activity at Space Savers has been modest but high quality. Through Sep 10, the facility generated 10 new leads, of which 70% converted to move-ins. This strong conversion rate continues the trend seen year-to-date – 255 total leads YTD with a 61.96% conversion, yielding 158 move-ins so far. The high lead-to-lease conversion (>60%) indicates that marketing and sales efforts are effectively turning inquiries into tenants. Focus now is on driving higher lead volume going into Q4 to sustain move-in growth, while maintaining the strong conversion performance.

Move-Ins, Move-Outs & Net Rentals

Leasing velocity remains positive. August saw 28 move-ins and 9 move-outs, for a net gain of +19 units. So far September (through 9/10) has recorded 7 move-ins and 3 move-outs, net +4 – pacing below August’s move-in count but still positive. Year-to-date, Space Savers has logged 158 move-ins vs. 72 move-outs, for a net increase of +86 units occupied in 2025. This net absorption has steadily grown occupancy (as detailed below). Keeping move-outs in check (averaging ~8 per month) while continuing strong move-in volume will be key to accelerating occupancy gains. Management is monitoring reasons for move-outs; so far turnover appears in line with expectations for a facility in lease-up.

Occupancy Trends

Occupancy continues its upward trajectory. As of mid-September, unit occupancy is ~50.3% (221 units occupied out of 439) and square footage occupancy ~50.9%. This is a slight increase from end-of-August (49.4% units, 50.1% SF). Importantly, economic occupancy (rent collected as a percentage of gross potential) has improved to 53.2%, up from ~48% last month – indicating better revenue yield on available space.

Figure: Occupancy trend – steady climb in unit occupancy from ~33% in Jan 2025 to ~50% by Aug 2025. Economic occupancy (53% as of Sep) is tracking above physical occupancy as tenant rates firm up.

Year-over-year, occupancy is significantly higher – roughly 20 percentage points above the same time last year. (In late summer 2024, as the facility was just opening, unit occupancy hovered around ~30% or less.) The facility has essentially doubled occupied units over the past 12 months. This is a major win, though ~50% occupancy means substantial room remains for improvement. Notably, 439 total units include some units not rentable; ~7% of units (32 units) are marked unrentable due to maintenance or other reasons, which slightly drags on the occupancy percentage. As those units are addressed and brought online, occupancy gains could accelerate. Going into Q4, the goal is to continue the steady occupancy climb – focusing on filling smaller and larger units (where vacancy is highest) to push physical occupancy toward the 60% range.

Revenue Performance

Revenue trends are very strong, reflecting both the growing tenant count and improved rate management. Monthly total revenue has increased from about $15k in January to $17.4k in August 2025, with summer months holding in the mid-$16k to $18k range【22†】. The chart below shows the 2025 monthly revenue trajectory (Jan–Aug):

Figure: MoM total revenue in 2025 – growth from ~$15k in Jan up to ~$17k+ by Aug. Minor dips in Feb/Apr were followed by record highs in May–Aug.

Comparing year-over-year, 2025 revenue has far outpaced 2024. August 2025’s ~$17.4k in revenue was 64% higher than August 2024 ($10.6k)【24†】. Similarly, July 2025 was ~75% above July 2024, and June 2025 was >3× the revenue of June 2024【24†】. These gains reflect the facility’s lease-up phase – driving both higher occupancy and higher absolute rent collected versus the prior year. Year-to-date, total receipts are $139,055 (Jan–early Sep 2025), nearly double the $73,820 collected in all of 2024. This explosive growth is expected from a new facility ramping up, but it’s a clear performance win nonetheless.

Figure: Year-over-year revenue comparison – monthly revenue in 2025 vs 2024. Each summer month in 2025 has far exceeded last year’s levels (e.g. Aug $17.4k vs $10.6k), reflecting ~60–75% YoY growth in recent months.

In terms of revenue mix, rental income comprises the bulk at $108.8k YTD (through 9/10). Insurance premiums contributed $17.6k YTD – a healthy ancillary income stream thanks to ~85% tenant insurance penetration. Fee revenue (admin fees, late fees, etc.) added $12.5k YTD, boosted by diligent fee collection (over $8.5k in late fees YTD). Total monthly revenue has plateaued around ~$17k for July/Aug, indicating that further revenue growth will depend on new move-ins (occupancy increase) and planned rate adjustments (discussed below). Overall, the facility’s revenue performance year-to-date is excellent, with robust YoY growth and improving quality of earnings (less discounting, more ancillary revenue).

Gross Potential vs. Actual Revenue

With occupancy at ~50%, there is a large gap between current earnings and the site’s potential at 100% occupancy. As of this report, monthly gross potential rent (if all units were rented at standard rates) is about $30.0k, versus $15.95k actual rent being collected – a 53.16% realization (economic occupancy). In other words, the facility is capturing just over half of the possible rent, leaving a $14k variance due to vacant, unrented space. This collection efficiency has improved from ~48% a month ago, thanks to recent move-ins and rate optimizations. The positive note here is that actual rented units are yielding slightly above standard rates – the occupied units’ combined rent ($15.95k) is about $1,230 higher than their standard rate sum, indicating successful rent increases and fewer discounts on occupied units. The main drag on revenue remains the empty half of the property (vacant and unrentable units) which represents ~$12k–$14k in unrealized rent each month. As occupancy grows and offline units come online, this gap will shrink. Management will continue tracking economic occupancy as a key metric – currently ~53% – to gauge how effectively potential revenue is being converted to actual revenue. The goal is to improve collection efficiency further by both filling more units and raising rates on existing tenants where justified.

Customer Rate Increases

Until now, Space Savers has operated in lease-up mode with relatively limited rate increase activity on existing tenants. That is starting to change in late Q3. In fact, management initiated a wave of customer rate increases effective Oct 1, 2025: 55 tenants (roughly one-quarter of the tenant base) have been notified of increases, averaging about +15% on their current rental rate【18†】. For example, a customer paying $124/month for a unit will increase to $143 (15% bump) effective 10/1. These 55 increases will collectively add substantial monthly revenue (several thousand dollars) going into Q4, assuming tenants accept the changes. Prior to this, only a handful of long-tenured tenants saw increases – e.g. one 10-month tenant had a ~15% rate hike applied in July – but no broad program was rolled out earlier in Q3.

The Oct 1st increase batch is the first large-scale rate adjustment since the facility opened. It targets tenants who have been in place ~6+ months and below market rate. The uniform ~15% increase suggests a strategic, across-the-board approach to boost revenue while (hopefully) staying within a range that tenants can absorb. We will monitor move-out activity and receivables closely after these hits, as a sudden jump in rent could prompt some attrition or delinquencies. So far, tenants have generally been on introductory rates or small step-ups, so this will test rate sensitivity. On the positive side, the increase letters position Space Savers for a notable rent roll uplift in Q4, helping close the gap between actual and potential revenue. Additionally, management can still selectively raise rates on the high-demand unit types (as occupancy warrants) beyond this batch. Overall, executing these customer rate increases is a crucial next step now that the property has achieved 50%+ occupancy.

Pricing & Unit Mix Analysis

Street rates vs. in-place customer rates have been carefully managed to balance occupancy goals with revenue optimization. The chart below compares current street rates (prices for new rentals) to the average rent existing customers pay, for each unit size, along with each size’s occupancy%:

Figure: Rate positioning by unit size (climate-controlled units). Blue bars = average current customer rent, gray bars = current street (asking) rate. Labels show occupancy % for each size.

Several insights emerge:

Small units (5x5, 5x10): These have the lowest occupancy (only 35% and 47% occupied, respectively). Notably, existing tenants in small units are paying ~25% more than the current street price (e.g. 5x5 tenants average $21.76 vs new rentals at $16). This suggests that initial pricing for small units was higher, but street rates were reduced to stimulate demand – yet occupancy remains soft. These sizes may be over-supplied or priced slightly above what the market will readily absorb, even after rate cuts. Further promotions or adjustments might be needed to boost 5x5 and 5x10 occupancy.

Mid-size units (7x10, 10x10): These are performing well. Occupancy is high – 85% of 7x10s and 72% of 10x10s are filled. Interestingly, existing customers in these units pay far above current street rates (7x10 avg $46.86 vs street $33; 10x10 avg $52.51 vs street $45). This indicates extremely strong demand historically – management had been able to push rates on these units (and many tenants came in before recent street rate reductions). Despite higher rents, these unit types are leasing well, so there may be opportunity to raise street rates here. At minimum, we should hold firm on price for 7x10 and 10x10 units given their occupancy strength, and consider moderate increases for new rentals or existing customers beyond Oct 1.

Large units (10x15, 10x20, 20x20): Underperformance is evident in the largest sizes. Occupancies are low at 37% for 10x15, 57% for 10x20, and 33% for 20x20. These units command high rents (street $115, $129, $160 respectively) and it appears the market demand at those rates is limited. In fact, current tenants in 10x15 and 10x20 units are paying slightly below the street rate on average (10x15 avg $104.54 vs $115 street; 10x20 avg $112.34 vs $129 street), implying management lowered rates or gave concessions to fill what few rentals we have in those sizes. The 20x20 units have virtually no rate disparity (avg $160, equal to street) – but with only 2 of 6 occupied, we simply haven’t moved many. This suggests our premium large units are priced near the top of the local market, and even recent rate discounts haven’t yet achieved strong uptake. To improve occupancy, we might need targeted marketing (e.g. contractors, businesses, or multi-unit renters) or further rate incentives for these big units. They represent a lot of square footage sitting empty, so filling even a handful will significantly bump revenue and occupancy. On the flip side, once demand picks up, these large units will bring in outsized rent dollars per rental.

In summary, the pricing analysis shows our rate strategy is largely on point – we’ve lowered rates where occupancy struggled (small and large units) and held/raised rates where demand was strong (mid-size units). The key underperformers by occupancy are the 5x5, 5x10, 10x15, and 20x20 units. These will be focus areas for Q4: driving occupancy in those sizes through pricing promos or special marketing. Meanwhile, high-occupancy types (7x10, 10x10) are doing well, but we must ensure we’re not leaving revenue on the table – as they stay full, we should consider inching street rates back up or at least applying the upcoming 15% increases to those tenants confidently.

Q3 Revenue Projection

With two months of Q3 in the books and September underway, we can forecast the quarter’s performance. Q3 2025 is on track to hit approximately $52k in total revenue, which would be the highest quarter yet for Space Savers. July and August combined for $35,240, and September is trending around $17k by month-end (with $10k already achieved by Sep 11). Hitting ~$52k would put Q3 about 7% above Q2 2025 ($48.8k). More impressively, it would be ~60% higher than Q3 last year 2024, which was $32.2k. Even if September comes in a bit lower, Q3 will comfortably exceed Q2’s revenue. This projection factors in typical rent collection patterns (many tenants pay at the first of the month) and recent leasing activity. It does not yet include any boost from the Oct 1 rate increases (those will impact Q4 onward). In essence, Q3 will close out as another record quarter, reflecting the property’s continued lease-up momentum.

Looking ahead, Q4 2025 should see an even larger jump in revenue with the Oct 1 rate changes in effect and further occupancy gains. If we annualize the current monthly run-rate (~$17k) we’d end 2025 around $200k in revenue, well above 2024’s $73.8k. However, to reach that potential, September’s final push and Q4 execution (filling units, retaining tenants through rate hikes) will be critical.

Summary & Key Focus Areas for Q4

Performance Wins in Q3 2025:

Surging Revenue Growth: YTD revenue ($139k) has nearly doubled last year’s total. Monthly revenues stabilized in the $16k–$18k range in Q3, ~65% higher than a year ago【24†】. This reflects successful lease-up and effective revenue management.

Occupancy Ramp-Up: Occupancy hit the 50% milestone – a 20+ point increase YOY – indicating strong leasing velocity. Net rentals remain positive each month, steadily filling the facility. Economic occupancy also improved ~5 points in the last month, boosting actual cash flow relative to potential.

High Conversion & Ancillary Capture: The facility is converting leads to move-ins at an excellent ~62% rate, demonstrating efficient marketing/sales. Ancillary income streams are healthy – e.g. insurance attachment is 85%, generating $17.6k YTD, and over $12k in fee revenue has been collected. These contribute significantly to NOI.

Strategic Rate Actions Initiated: Management took action on customer rates with a broad 15% increase rollout for Oct 1 affecting 55 tenants. This positions the property for a substantial revenue “win” in Q4 if successfully implemented (with minimal move-outs). It also signals a transition from pure occupancy-growth mode toward improving rent roll quality.

Top Challenges & Q4 Focus:

Accelerating Occupancy to Critical Mass: At ~50% occupied, Space Savers still has significant vacant inventory. The next 10–15% occupancy gain will be tougher and requires aggressive effort. Underfilled unit types (5x5, 5x10, 10x15, 20x20) need targeted attention – possibly promotional pricing, local marketing campaigns, or contacting wait-list prospects for those sizes. Converting more leads (and generating new leads) for these specific unit sizes is a priority to avoid stagnation at 50% occupancy.

Managing Rate Increase Impact: The Q4 rent hikes are necessary for revenue, but they come with risk. We must watch tenant responses – any increase in move-out notices or delinquencies in October/November? Thus far, collection stats are solid (36 tenants owe ~$5.4k, which is manageable), but higher rents could stress some budgets. The team should be prepared with customer service outreach, payment plans, or retention offers for good tenants who balk at the increase. The goal is to realize the revenue uplift without undoing our occupancy gains.

Maximizing Revenue per Available Foot (RevPAF): With half the property still unrented, we face a dual challenge of filling units while also optimizing rates. For high-demand units (e.g. 7x10s), we likely can push rates even higher – both street rates and additional existing tenant bumps – to capitalize on that demand. Conversely, for low-demand units, we might sacrifice some rate to gain occupancy. Finding that balance will be key in Q4. The rate spread where existing customers pay more than new customers in small unit sizes is a concern – we don’t want to alienate loyal tenants or leave money on the table with new ones. Continuous price shopping of competitors and elasticity testing will be important.

Bringing Unrentable Units Online: The facility still has a number of units (~32 per the system) marked unrentable. Whether due to maintenance, construction, or administrative hold, each offline unit is lost revenue. A focus for Q4 is to resolve these issues and make as many of those units rent-ready as possible. Every additional rentable unit will help boost occupancy and revenue potential.

In conclusion, Space Savers is demonstrating strong performance for a relatively new facility – revenue and occupancy are rising sharply, and operational metrics like lead conversion and insurance uptake are excellent. Going into Q4, the store’s emphasis will shift toward quality of earnings: driving rent revenue through the new rate increases and continued rate management, while still pushing to fill the remaining empty units. Key wins (revenue growth, occupancy gains) provide momentum, and key challenges (half the property still vacant, and executing rent increases) give us clear targets to tackle. With sustained marketing efforts, careful rate optimization, and tenant engagement, Space Savers is on track for a very solid finish to 2025 and a foundation for even greater performance in 2026.

Want to print your doc?
This is not the way.

Try clicking the ··· in the right corner or using a keyboard shortcut (

CtrlP

) instead.