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Occupancy:Held steady ~88–90% through Q2 (Mar–Jun).Dropped to ~86% in July due to delinquent auctions.Revenue: GPR peaked at ~$44.9k in May, dipped to ~$41k in July.RPSF:Climate Controlled: $1.33/sfDrive-Up: $0.73/sfParking: $0.05/sfRates vs Market: In line with Ocean City’s average 10×10 (~$116).YOY Trend: Stable occupancy, slight dip Q3 due to delinquent cleanout. Good climate rate capture.
Occupancy:Very strong: 93–95% in Q2.Slight dip to 92% in July after move-outs + 2 auctions.Revenue: GPR rose from ~$20.5k (Apr) to ~$29.8k (Jul).RPSF:Drive-Up (all units): $0.52/sfRates vs Market: Well below local 10×10 average (~$110).YOY Trend: Strong occupancy, significant economic upside from tenant rent increases.
Ocean City, MD: Competitive at ~$116 per 10×10. Market slightly softer this summer (rates –7% MoM). Facility is aligned with peers.Verona, VA: Rates far below Staunton area averages (~$110 for 10×10). High occupancy gives room to push rents steadily without losing tenants.Industry Context: National occupancy ~90%; 10×10 non-CC ~$123 and climate ~$140, both flat YOY. Sector stable.
Ocean City: Stable ~88–90% Q2, dip in July.Verona: 93–95% Q2, slight drop to 92% in July.Ocean City: Climate at $1.33/sf leads, Drive-up $0.73, Parking $0.05.Verona: Drive-up $0.52/sf.Ocean City: Solid occupancy & aligned with market, needs recovery from delinquency auctions.Verona: Strong occupancy, major upside in tenant rent increases vs. market.
Q1 2025 (March): ~87.7%Q2 2025 (June): ~89.7%Early Q3 (July): dipped to ~86% after 10 delinquent units were auctioned (net –15 units).Current occupancy remains ~85%, slightly below national averages but still healthy.Q2: 29 move-ins vs. 20 move-outs (net +9).July: 3 move-ins vs. 18 move-outs (net –15, mostly due to auctions).Year-to-date net rentals turned slightly negative in July.GPR peaked in May at ~$44.9k, ~$44.4k in June, dropped to ~$41.0k in July.Actual rent collected in Q2 averaged ~$35k/month, dipped to ~$33.3k in July.Tenants were paying ~81% of standard rates in July (down from ~91% in March).Climate-Controlled: ~$1.21/sf (e.g. 10×10 ~ $121/month).Drive-Up: ~$0.81/sf (10×10 ~ $81/month).Parking: ~$0.10/sf (e.g. 10×20 ~ $50/month).Facility-wide average: ~$0.73/sf.Slight dip from ~$0.79 in March to ~$0.73 in July due to move-outs.5.5% of tenants received increases in the last 90 days.About half of tenants are already at or above standard rates.Median tenant is $1 above standard, average tenant ~$7.50 below.Limited headroom for aggressive hikes, but selective increases will continue.
Q2 2025: 93–95% (peaked at 95% in June).July: dipped slightly to ~92.4% (278 occupied of 301).Two units auctioned in July for non-payment.Still operating above 90% — a strong occupancy position.Q2 net rentals: +5 units (April +0, May +1, June +4).July net rentals: –8 (11 move-ins vs. 19 move-outs, incl. 2 auctions).YOY: Significant occupancy gains since takeover; facility remains essentially full.GPR: $20.5k (April) → $29.8k (July), a 45% increase.Actual rent lagging: tenants pay ~57–62% of standard rates (due to many legacy leases).Key opportunity: closing the gap between collected rent and posted rates.Facility-wide: ~$0.53/sf.Small units (6×10): ~$0.73/sf (close to market).Medium units (10×12, 10×14): ~$0.50–0.54/sf (below market).Large units (10×24, 12×24): ~$0.41/sf (well below market).Street rates raised in Q2, potential PSF climbed from $0.83 to $0.91.None of the tenants pay above standard; only 18 are at standard.Average tenant ~$39 under standard.9% of tenants had increases in past 90 days (25 units).Focus: systematically raise rents on long-tenured tenants far below market.
Average unit rents ~$100–115/month (10×10 non-climate).Competitors like CubeSmart and Devon Self Storage advertise ~$110–$129 with promotions.Market saw a slight seasonal dip in pricing (~–7% MoM entering summer).Our facility is aligned with market rates, particularly for climate units.Average 10×10 rents ~$110/month in Staunton area (mix of climate and non-climate).Verona Storage rates (~$80–85 for 10×12/14) are well below market.Occupancy >90% shows strong demand, with room to raise rates.Local market stable with no significant oversupply.National occupancy steady around ~90%.Street rates flat YOY: non-climate 10×10 ~$123, climate ~$140.Industry stabilized post-2021 boom, fundamentals remain solid.
Ocean City: Competitive pricing, slightly below average occupancy due to auctions, but positioned well for recovery.Verona: Occupancy excellent, rates well under market, strong opportunity for revenue growth via rent adjustments.Overall: Both facilities are healthy and positioned to improve NOI through occupancy management (Ocean City) and rent growth (Verona).
Occupancy: The facility’s physical occupancy has been consistently high. At the end of Q1 2025 (March), unit occupancy was about 87.7%, rising to ~89.7% by end of Q2 (June). This slight improvement in Q2 was driven by positive net rentals (more move-ins than move-outs). In early Q3, occupancy dipped to ~86% (July), primarily due to a purge of delinquent units – 10 units were auctioned in July causing a net loss of 15 units that month. Despite this, the facility remains around 85% occupied, which is near industry norms. (For context, national average occupancy is ~90%, so Ocean City is slightly below that after the auctions but still healthy.)Rental Activity: Move-in and move-out trends were balanced in Q1–Q2. In Q2 2025, Ocean City saw 29 move-ins vs. 20 move-outs (net +9 over Apr–Jun). However, July had 3 move-ins vs. 18 move-outs (net –15) due to the auctions. Overall, year-to-date net rentals are slightly negative after July. We will monitor August/September to see if occupancy bounces back once those units are re-rented.Revenue & Rates: Gross Potential Rent (GPR) peaked in May at ~$44,937 per month and was ~$44,424 in June. In July, GPR dropped to ~$40,963 after the occupancy loss (fewer occupied units means less potential rent). The actual monthly rent collected from occupied units was about $35,000 in Q2 (e.g. $35,252 in May, $35,568 in June), and dipped to ~$33,346 in July. The gap between GPR and actual indicates some economic occupancy upside – in July, tenants were paying ~81% of the standard rates on average (Actual Occupied Rent $33.3k vs Potential $41.0k). This gap widened from ~91% in March (indicating that as of Q3 there is more room to push existing tenant rates closer to current street rates).Rent per Square Foot (RPSF): As of August 2025, Ocean City’s average in-place rent per sq. ft. is $0.73/month across the entire facility. Breaking it down by unit type:Climate-Controlled units: about $1.21 per sq.ft. monthly on average (e.g. a 10×10 climate unit yields ~$121/month). This is aligned with local climate unit rates – the national average for climate 10×10 is ~$140, and locally a 10×10 in Ocean City runs ~$116/month.Drive-Up (non-climate) units: around $0.81 per sq.ft. monthly (e.g. $81 for a 10×10 drive-up). This suggests Ocean City’s drive-up rates are relatively strong; by comparison, the U.S. average for a 10×10 non-climate is $123/month ($1.23/sf), but that figure is skewed by urban markets. Locally, competitors offer 10×10 drive-ups in the ~$100± range (often with discounts), so our pricing is in line.Parking spaces: roughly $0.10 per sq.ft. per month (since vehicle/boat storage is typically rented per space, this equates to, for example, ~$50 for a 10×20 outdoor parking spot). This is a lower PSF yield as expected for outdoor storage.Quarterly comparison: These RPSF figures are relatively stable – if anything, climate unit RPSF has inched up slightly (we’ve implemented modest rate increases on some climate units in Q2), while the facility-wide average RPSF dipped from ~$0.79 in Mar to ~$0.73 in Jul due to the Q3 move-outs (vacating some higher-rate units). We aim to regain ground in Q4 by backfilling vacancies at market rates.Rate Management (Existing Tenants): Ocean City has been proactive but cautious with rate increases. According to our August revenue management report, about 5.5% of tenants received rent increases in the last 90 days. Most existing customers are already near current street rates – in fact, roughly half of occupied units are at or above the current standard rate for their unit size. The median tenant is paying $1 above the current rate, and on average tenants are only ~$7.50 below standard. This means we have limited headroom for significant increases without risking move-outs; the recent auctions also help clear any delinquent, under-paying accounts. Going forward, we will continue targeted adjustments (e.g. small periodic increases on long-tenured tenants who are still below market).
Occupancy: Verona Storage is very full, averaging about 93–95% occupied through Q2 2025. At the end of June, unit occupancy was 95.0% (and square-foot occupancy ~96.2% of rentable SF). July saw a slight dip to ~92.4% occupancy after some move-outs. Specifically, in Q2 Verona gained a net +5 units (Apr +0, May +1, June +4), reaching a peak of 286 units occupied in June (out of 301 total). In July, net rentals were –8 (11 move-ins vs 19 move-outs), bringing occupancy down to 278 units occupied. Notably, two units were auctioned in July for non-payment, which contributed to the dip. Even after this, over 92% of units are occupied, which is well above typical industry stabilization thresholds. Essentially, Verona has been running at full or near-full capacity since acquisition.Rental Activity: Move-ins remained strong (e.g. 13 in June, 11 in July), but we saw a surge of move-outs in July (19, including the 2 auctions). This could be seasonal or rate-related turnover. Prior to July, turnover was low – for example, only 3 move-outs in April and 8 in May, which the facility easily replaced with new rentals. The big picture: Verona has added occupancy YOY (it was presumably lower when we took over in early 2024), and even after recent move-outs it’s effectively full. Our task will be retaining that high occupancy while moving rents upward.Revenue & Rates: Gross Potential Rent has grown each quarter as we increased street rates. It was ~$20,515 in April and climbed to $29,816 by July – a 45% jump in potential rent. This reflects higher posted rates and the filling of larger units. However, actual rent collected has not caught up to that potential. In May, for instance, actual occupied rent was ~$16,752 versus a $27,059 potential – meaning tenants on average were paying only 62% of the standard rate. Many customers are legacy tenants on older rates. This is our biggest opportunity: economic occupancy (rent collected as a % of potential) is lagging. With July’s higher GPR ($29.8k), and actual rent likely around ~$17k, tenants are paying roughly 57% of current market rates on average. We plan to gradually raise existing customer rents to close this gap, while of course maintaining the high occupancy.Rent per Square Foot: Verona is an all drive-up, non-climate facility, so its rents are lower on a per-sf basis. The current blended RPSF is about $0.53 per sq.ft. per month (across 31,852 occupied sq.ft generating ~$16.7k rent). By unit type (all non-CC):Small units (e.g. 6×10): Standard rate ~$59 (which is ~$0.98/sf) but many rented at ~$44 (0.73/sf) on average. These smaller units have relatively higher PSF, and we’re close to market on them.Medium units (e.g. 10×12, 10×14): Standard ~$105–108, but in-place averages ~$61–$71 (around $0.50–$0.54/sf). There’s a sizeable gap here – for example, 10×14 units average $71 now vs $108 street.Large units (10×24, 12×24): Standard ~$168–189, but in-place rents are ~$99 (only ~$0.41/sf). These bigger units have the largest discount relative to market – many long-term tenants are paying almost half of current street rate.Quarterly trend: Our posted rates were increased in Q2 (raising the potential PSF from $0.83 in May to $0.91 in July). However, the actual RPSF for occupied space has only ticked up slightly as we cautiously implement tenant rate hikes. We anticipate the actual RPSF will rise in coming quarters as scheduled increases take effect. Even an average rent of $0.53/sf is low compared to industry norms (national average ~$1.23/sf for 10×10 non-CC, though of course rural Virginia rates are lower).Rate Management: Verona has significant upside through rent increases. Virtually all tenants are below current street rate – none pay above it, and only a handful are right at standard (18 units at par). The average tenant is ~$39 under the standard rate for their unit. We’ve begun addressing this: about 9% of tenants had rent increases in the last 90 days (25 units), which is a faster pace than Ocean City. We are prioritizing the largest discrepancies – for example, those 10×24 units paying $98 while new customers pay $140+. Importantly, demand remains strong, so we feel confident that we can lift rates quarter-by-quarter without driving away too many tenants. So far, it’s working: even after recent increases, occupancy has held above 90%. We’ll continue scheduling incremental upticks (no scheduled future increases show in the system yet, but we plan to add them) focusing on long-tenured renters who are far below market.
250821 Apex Meeting notes
📊 Key Performance Takeaways
Ocean City Self Storage (Bishopville, MD)
Verona Storage (Verona, VA)
Market Positioning
📈 Visuals
1. Occupancy Trends (Quarterly %)
(see chart below)
2. RPSF by Unit Type
(see charts below)
✅ Overall:
Performance Overview for Ocean City & Verona Self Storage
Both Ocean City Self Storage (Maryland) and Verona Storage (Virginia) are maintaining high occupancies and stable operations. Since coming under our management (both are “non-mature” facilities with limited year-ago data), they have achieved occupancy levels around or above 90%, in line with strong self-storage sector trends. Below is a detailed review of each facility’s year-over-year (YOY) performance with quarter-by-quarter highlights, followed by insights on their local markets and competition.
Ocean City Self Storage – YOY & Quarterly Performance
Occupancy:
Rental Activity:
Revenue & Rates:
Rent per Square Foot (RPSF):
Rate Management:
Summary: Ocean City is stable with ~85–90% occupancy. Climate units achieve market rates, drive-up units are competitive, and parking rents reflect expected lower yield. Main focus: refill auctioned units and continue modest rent adjustments.
Verona Storage – YOY & Quarterly Performance
Occupancy:
Rental Activity:
Revenue & Rates:
Rent per Square Foot (RPSF):
Rate Management:
Summary: Verona has excellent occupancy (~92–95%) and significant rent upside. With careful rent increases, revenue growth potential is strong while maintaining high occupancy.
Market & Competitor Insights
Ocean City, MD Market:
Verona/Staunton, VA Market:
Sector Context:
How Our Properties Stack Up
Performance Overview for Ocean City & Verona Self Storage
Both Ocean City Self Storage (Maryland) and Verona Storage (Virginia) are maintaining high occupancies and stable operations. Since coming under our management (both are “non-mature” facilities with limited year-ago data), they have achieved occupancy levels around or above 90%, in line with the strong self-storage sector trends (U.S. occupancies have leveled near 90% since late 2022). Below is a detailed review of each facility’s year-over-year (YOY) performance with quarter-by-quarter highlights, followed by insights on their local markets and competition.
Ocean City Self Storage – YOY & Quarterly Performance
Summary for Ocean City: In its first year with us, Ocean City Self Storage is performing well – maintaining ~85–90% occupancy and steady revenues. Q2 showed solid performance with increased occupancy and stable rent, while early Q3 saw a cleanup of delinquencies which temporarily reduced occupancy. The facility’s climate units are achieving market rates, and overall revenue per square foot is solid. Our focus will be on re-filling vacated units and carefully pushing rents on any remaining below-market tenants to maximize revenue.
Verona Storage – YOY & Quarterly Performance
Summary for Verona: Since joining the portfolio, Verona Storage quickly filled up and operates at ~93%+ occupancy – an excellent outcome. The facility’s market rates have increased markedly (GPR up ~45% in a few months), but in-place rents are still catching up, so revenue growth will come from raising existing tenant rates. In Q2, Verona delivered strong occupancy and some rent growth; early Q3 saw a minor occupancy dip due to move-outs, but this also creates an opportunity to backfill at higher rates. Overall financial performance is trending upward, and Verona is poised for NOI improvement as we execute on rate management.
Market & Competitor Insights
Ocean City, MD Market: The Ocean City/Berlin, MD self-storage market is relatively active and somewhat seasonal (serving both year-round residents and summer vacationers). According to SelfStorage.com, the average storage unit in Ocean City rents for about $102.65 per month (all sizes). A standard 10×10 unit goes for around $116.50/month on average in this market. Major competitors include CubeSmart (West Ocean City) and Devon Self Storage, which are advertising aggressive promotions like “First Month Free” and ~10×10 rates in the $110–$129 range. There are also several local operators (e.g. Ocean City Mini Storage, etc.).
Our Ocean City facility’s rates are in line with the market – for instance, our climate-controlled 10×10 units at $120/month mirror the local average for climate units, and our non-climate 10×10 rates ($100) are on par with peers. In terms of occupancy, Ocean City Self Storage (~85–90% occupied) is competitive; many facilities nationally have normalized around 90% occupancy, and given the seasonal usage in a beach town, our occupancy is acceptable. Notably, market pricing saw a slight seasonal softening this summer – the average unit price in Ocean City fell by about $7 (-7%) month-over-month heading into summer. This suggests some rate discounting in the area, likely to attract summer renters. Even so, street rates year-over-year are roughly flat, which aligns with national trends (e.g. US 10×10 rates are unchanged YOY at ~$123). We expect demand to pick up in the fall as seasonal items go back into storage, potentially allowing a rate uptick.
Verona/Staunton, VA Market: Verona is just outside Staunton, VA. It’s a smaller market with fewer competing facilities. The average price for a 10×10 in the broader Staunton area is about $110/month, which likely reflects some climate-controlled facilities in nearby cities. In Verona itself, our facility is a price leader – for example, Verona Storage advertises 10×12 units at ~$85 and 10×14 at ~$80 to new customers (and smaller 6×10 units at $45). These are very affordable rates (around $0.60–$0.70/sf). Nearby competitors in Staunton/Waynesboro have drive-up 10×10 units typically in the $70–$100 range depending on promotions, and climate 10×10 units over $100. Our current in-place rates (many 10×10s effectively ~$60) are below even the low end of the market, underscoring our opportunity to raise rents. Despite being cheaper, our occupancy ~92% indicates that the local demand is absorbing our rate increases without issue. Overall, the Augusta County market is stable – not a lot of new supply (Virginia averages ~5.18 sq.ft. of storage per person, near the US average, and this area likely has no oversupply).
Importantly, self-storage sector fundamentals remain solid in 2025. Nationally, street rates are holding steady or up slightly (e.g. climate-controlled rates up ~1% YOY) and occupancy is high. The industry saw record performance in 2021–2022, and while it has normalized, occupancy is “nearly flat” at those high levels through 1H 2023. Investors are still bullish on storage, and we’re not seeing major rate erosion. For our two properties, this means we can expect continued demand support for high occupancy, and we have room to carefully push rents.
Competitor Rate Trends: Both areas have shown minimal YOY street rate change, echoing the national trend of ~0% change for 10×10 non-climate units. In Ocean City, competition is based on promotions and convenience (location near the resort vs inland). Ocean City Self Storage is well-positioned in Bishopville with highway access, and our rates are competitive with the likes of CubeSmart’s facility on Ocean Gateway (CubeSmart’s 10×10 non-CC units around $115 after discount). In Verona/Staunton, many facilities are smaller local operations; our main competitive edge is price, but as we raise rates we’ll approach parity with others. We will monitor any new projects (none known in Verona currently) and keep an eye on the market occupancy.
How Our Properties Stack Up: In summary, Ocean City and Verona are performing strongly relative to their markets. Ocean City’s occupancy is solid and should climb back toward 90%+, and its rental rates (especially for climate units) capture the market’s willingness to pay. Verona’s occupancy is excellent (over 90% vs mid-80s U.S. average), and even after planned rate hikes it will likely remain the value option in its area, supporting retention. The self-storage sector’s resilience – with a national 10×10 rate of ~$123 (unchanged YOY) and average economic occupancy ~85-90% – provides a favorable backdrop. We will leverage this by continuing to drive revenue: Ocean City will focus on filling units post-auction and incremental rate bumps on any lagging units, and Verona will aggressively, but thoughtfully, increase existing rents toward market levels. With these strategies, we expect both facilities to show improved YOY financial performance in the coming quarters while maintaining high occupancy and competitive positioning in their respective markets.
APEX REPORTING + CAP EX:
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