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Hobbs Self Storage – 2025 Year-End Summary (vs. 2024)

Overall Performance Hobbs Self Storage continued to grow in 2025, building on strong lease-up momentum from 2024. While revenue performance was excellent, operational performance was mixed due to a sharp increase in move-outs. The facility is transitioning from initial lease-up to stabilization, and 2026 should focus on retention, occupancy growth, and rate optimization.

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Key Highlights

Occupancy

Year-end occupancy increased from ~53% (2024) to ~58% (2025).

Occupancy peaked mid-2025 near 65%, then softened in Q4.

More than 40% of units remain vacant, leaving meaningful upside.

Move-Ins / Move-Outs

Move-ins: 171 in 2025 (up slightly from 160 in 2024).

Move-outs: 159 in 2025 (nearly double 2024’s 82).

Net rentals:

2024: +78 units

2025: +12 units

Higher turnover significantly slowed occupancy growth in 2025.

Revenue

2025 revenue: $102,636, nearly double 2024’s $51,081.

Revenue growth was driven primarily by higher average occupancy, not rate increases.

Despite operational headwinds, financial performance was very strong.

Unrentable Units

Unrentable units declined from 19 to 14 during 2025.

This improvement added rentable inventory, but ~7% of units remain offline.

Continued focus on repairs will unlock additional revenue potential.

Gross Potential Rent (GPR)

GPR declined from ~$18,500 to ~$12,000 in 2025.

Indicates discounting, lower rates, or unit mix issues.

Pricing strategy should be revisited once occupancy improves.

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Key Areas of Focus for 2026

Tenant Retention

Move-outs nearly doubled year over year.

Auctions increased significantly, signaling delinquency challenges.

Focus on collections, autopay adoption, and tenant experience.

Occupancy Growth

At ~58% occupied, the facility is still under-stabilized.

Increased marketing and leasing activity is needed.

Target: 70–80% occupancy over the next 12–18 months.

Rate Optimization

As occupancy improves, gradually reduce discounts.

Adjust street rates to better reflect market conditions.

Focus on improving revenue per occupied unit.

Facility Maintenance

Continue reducing unrentable units.

Preventative maintenance will protect long-term revenue.

Delinquency Control

Strengthen payment enforcement and early intervention.

Encourage autopay and insurance participation.

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Early 2026 Update (Jan 1–14)

Move-ins: 7

Move-outs: 5

Net gain: +2 units

Occupancy: ~59.5% (113 of 190 units)

Revenue collected: ~$5,800 MTD (on pace with prior months)

Auctions: 0 so far in 2026

Lien notices issued: 6 (monitor closely)

Start to 2026 is stable, with slight occupancy gains and steady revenue, though delinquency remains an area to watch.

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Bottom Line

2025 was a strong revenue year, confirming the facility’s long-term potential.

Operational focus now shifts from lease-up to stabilization.

Success in 2026 will depend on reducing churn, filling vacancies, improving collections, and tightening pricing strategy.

Hobbs Self Storage – 2025 Year-End Performance Review

Overview of 2025 vs 2024 Performance

The Hobbs facility showed continued improvement in 2025, building on the strong growth achieved in 2024. Key operational metrics – including move-ins, move-outs, net rentals, occupancy rate, unrentable units, gross potential rent, and revenue – are summarized below with year-over-year comparisons. In 2024, the facility was ramping up after opening (or expansion), resulting in rapid occupancy gains and relatively few move-outs. In 2025, occupancy growth slowed as move-outs increased sharply, though revenue still doubled year-over-year. We detail each area of performance and highlight where management attention is needed. Visual charts are included to illustrate trends and comparisons.

Occupancy and Rental Activity

Figure 1: Monthly Occupancy Rate for Hobbs Self Storage, Jan 2024 – Dec 2025. Occupancy climbed rapidly in 2024 and continued to increase in 2025, albeit at a slower rate.

Occupancy Rate: The facility’s occupancy (by unit count) improved from ~53% at the end of 2024 to ~58% at the end of 2025. In 2024, occupancy surged from roughly 18% in January to 53% by December (Figure 1), reflecting strong move-in activity as the facility filled new units. In 2025, occupancy growth was modest – rising from ~56% in January 2025 to 58% by December 2025. Notably, occupancy actually peaked around mid-2025 at ~65% before dipping in Q4 (Figure 1). The year-end occupancy of 58% indicates room for improvement, as over 40% of units remain vacant or unrented. Converting more vacant units into occupied, paying status will be a priority going forward.

Move-Ins and Move-Outs: Tenant turnover increased significantly in 2025. Total move-ins for the year were 171, slightly higher than 2024’s 160 move-ins. However, move-outs spiked to 159 in 2025 – nearly double the 82 move-outs in 2024. This surge in move-outs greatly reduced net occupancy gains. In 2024 the facility achieved a net gain of +78 units (move-ins minus move-outs) over the year, whereas 2025’s net gain was only +12 units. Figure 2 highlights this contrast: in 2024 move-ins far exceeded move-outs (by 78), but in 2025 move-ins barely outpaced move-outs (net +12). This indicates higher turnover and possibly lower tenant retention in 2025. Some of the move-outs in 2025 were driven by auctions for delinquent accounts (discussed later), which is an area for improvement. Management should investigate the causes of the increased move-outs – whether due to delinquency, customer service issues, or market factors – and work to improve retention in 2026.

Figure 2: Annual Move-Ins vs Move-Outs. 2024: 160 move-ins and 82 move-outs (net +78 units). 2025: 171 move-ins and 159 move-outs (net +12 units). The much higher move-out count in 2025 greatly reduced net occupancy gains.

Unrentable Units: A positive development in 2025 was the reduction in unrentable units. At the end of 2024, 19 units were classified as “unrentable” (out of service) due to maintenance, damage, or other issues. Throughout 2025, management brought several of these units back online, lowering the unrentable count to 14 units by December 2025. This improvement added 5 units to the rentable inventory. Unrentable units still represented about 7% of total units at year-end 2025, so continued focus on repairs and maintenance is needed to further reduce this number. Every unit returned to service increases potential revenue and occupancy. The goal for 2026 should be to continue rehabbing unrentable units, aiming to get close to 0 units offline. This will also help restore lost Gross Potential Rent (theoretical rent if all units are rented at standard rates).

Gross Potential Rent (GPR): The facility’s Gross Potential Rent actually decreased in 2025, from about $18,522 at the end of 2024 to $12,046 at the end of 2025. This is a notable drop (~35%) in the total potential rent if the facility were fully occupied. Several factors likely contributed: (1) The reduction in unrentable units should have increased GPR, so that wasn’t the cause. Instead, it’s likely that rental rates were lowered on many units (or smaller/cheaper units comprise the new occupancy), reducing the average rent per unit. (2) It’s possible some units were reclassified or removed from inventory (though total unit count remained 190). The decline in GPR despite higher occupancy is a concern – it suggests heavy discounting or rate reductions occurred in 2025. Management may need to review pricing strategy: once occupancy stabilizes, rates should be optimized upward to grow GPR (without sacrificing occupancy). Reversing the GPR decline will be important for maximizing revenue potential.

Financial Performance (Revenue)

Figure 3: Total Annual Revenue Collected. 2025 revenue was $102,636, roughly double 2024’s $51,081.

Despite mixed operational metrics, financial performance improved substantially in 2025. Total revenue collected for 2025 was $102,636, almost exactly double the $51,081 collected in 2024. Figure 3 illustrates this strong revenue growth year-over-year. Several factors drove the revenue increase:

Higher Occupancy: The average occupancy in 2025 was higher than 2024 (even though year-end occupancy was only modestly higher). In early 2024 the facility was largely empty, whereas by early 2025 it had over 55% occupancy. This larger tenant base generated significantly more rental income each month in 2025.

Rent Rate Changes: It’s likely that some rent rate adjustments or fewer free rent promotions were in place in 2025 compared to the initial lease-up period. However, as noted, the drop in Gross Potential Rent suggests many tenants in 2025 were on discounted rates or smaller units, so the revenue doubling is primarily volume-driven (more occupied units paying rent), not rate-driven.

Delinquency Management: The revenue figures are collected revenue, meaning they account for what was actually paid. The high number of auctions in 2025 (indicating some tenants defaulted) did not prevent overall revenue from rising. However, bad debt from auctions could be a drag on potential revenue. It will be important to convert as much billed rent into collected revenue as possible going forward.

Overall, 2025’s revenue performance was strong, reflecting the facility’s maturation. With occupancy around 58%, there is still significant upside for revenue growth in 2026 by filling more units (and eventually improving rates). Keeping the revenue trend on an upward trajectory will depend on both increasing occupancy and managing rental rates (minimizing discounts and raising prices where market-justified once occupancy is healthier).

Key Focus Areas for Improvement

While 2025 showed solid performance, the data reveals several areas that warrant management focus in 2026 to enhance the facility’s performance:

Tenant Retention & Turnover: The jump in move-outs in 2025 is the single biggest concern. With 159 move-outs in 2025 vs 82 in 2024, the turnover rate nearly doubled. This not only slowed occupancy growth but also incurred costs (cleanup, marketing, lost rent during vacancy, etc.). A considerable portion of these move-outs were due to auction sales for non-paying tenants – there were 18 auctions in 2025, up from just 3 in 2024【43†】. High auction volume indicates a need to improve collections and delinquency processes. Focus for 2026: improve tenant screening, step up payment reminders/collection efforts, and possibly offer incentives for on-time payment (the facility already has ~67% of tenants on autopay as of Jan 2026, which is good). Reducing delinquencies will directly lower the number of involuntary move-outs. Additionally, management should analyze other move-out reasons (e.g., customer service issues, price increases, local competition) and address them. Enhancing the tenant experience and possibly implementing retention programs (lease renewal incentives, referrals, etc.) could help keep move-outs down.

Occupancy Growth: At 58% occupancy, the facility is only about half full. While this is a progress from the ~53% a year ago, the slowdown in 2025 means a renewed marketing push is needed. Focus on marketing and leasing strategies to attract new tenants: targeted advertising, promotions for new move-ins (though balanced with not undercutting rates too much), and optimizing online visibility (improving that “Google ranking” metric, which was noted in the report as well). The Hobbs facility should aim to get occupancy into the 70-80% range over the next year, which will significantly boost revenue and operational efficiency.

Rate Management: The drop in Gross Potential Rent suggests that rental rates or unit mix in 2025 were not optimized for maximum revenue. After driving occupancy higher, management should revisit pricing strategies. Evaluate if current rates are below market – if so, moderate rent increases for existing tenants (where justified) and higher street rates for new tenants could be phased in, especially once occupancy crosses ~70%. The goal is to grow rental income per unit without sacrificing occupancy. Monitoring competitors’ pricing and the local supply/demand will inform this. Additionally, minimize concessions and free months now that initial lease-up is over.

Unrentable Units & Facility Maintenance: Continue the progress made in 2025 by addressing the remaining 14 unrentable units. Each unrentable unit is lost potential revenue. Allocate capital expenditure or maintenance resources to fix these units (whether it’s door repairs, water damage, pest control, etc.). By making these units rentable, the facility’s total rentable square footage and GPR will increase. Also, preventative maintenance on occupied units can prevent new units from becoming unrentable.

Delinquency Control: The high number of lien notices (e.g., 6 lien notices were issued in the first two weeks of Jan 2026 alone) shows that delinquencies remain an ongoing issue. Besides auctions, even late-paying tenants can strain cash flow. Strengthening delinquency control – for example, stricter late fee enforcement, more frequent reminders, and offering autopay sign-up during move-in – will help maintain steady revenue. The facility might consider occupancy protection plans or tenant insurance requirements, which sometimes cover the facility’s losses in event of default, although the report’s “Overall Protection %” suggests insurance attachment rate might already be tracked.

By focusing on the areas above, Hobbs Self Storage can improve its operational efficiency and financial results in 2026. In particular, reducing churn (move-outs) and filling more units will be key to hitting higher occupancy and revenue targets.

Early 2026 Performance Update (Jan 1–14, 2026)

The new year has started on a positive note, albeit with continued caution signs in delinquencies. According to the management summary for January 1–14, 2026, the facility has seen 7 move-ins and 5 move-outs in the first two weeks. This yielded a net gain of +2 tenants, nudging the occupancy up slightly. As of mid-January, 113 units are occupied out of 190 (59.5% unit occupancy) and 14 units remain unrentable – essentially the same unrentable count as end of 2025. The incremental occupancy gain has inched the occupancy rate up to about 59.5% (from 58% in Dec). It’s a small improvement, but a step in the right direction.

Financially, the facility has collected about $5,809 in revenue month-to-date (through Jan 14) according to the report. This is roughly on track, given that it represents about half a month’s collections (December 2025’s full-month revenue was ~$9.5k). We’ll want to monitor if all January rents come in by month-end, especially since 6 lien notices have already been issued in the first half of January – indicating several tenants were behind on payments after the holidays. On a positive note, 0 auctions have occurred so far in 2026 (none scheduled in the first two weeks), so hopefully some of those delinquent tenants will cure their balances before it comes to auction.

In summary, 2026 has kicked off with a slight uptick in occupancy and steady revenue inflows. The focus areas identified (tenant retention, filling vacancies, managing delinquencies, and optimizing rates) remain critical as we move through the year. By addressing the high move-out rate and continuing to attract new move-ins, the Hobbs facility can accelerate its occupancy growth. Combined with careful rate management and unit upgrades, these efforts will position us to make 2026 a year of robust performance, building on the foundation laid in 2024 and 2025.