What Percent Stock Means in Self Storage and Why It Matters
- garrett581
- 6 days ago
- 2 min read
By Garrett Byrd
Franchise owners ask smart questions. One asked what percent stock means and why it matters. The answer shapes how you read supply pressure in any market.
Percent stock measures the share of new storage space delivered compared to the total space already in place at the start of the period. It gives you a fast read on supply pressure. You see how much new space is hitting a market compared to what already exists.
A higher percent stock number signals more construction. More new units create competition. Occupancy trends soften when new space grows faster than demand. It becomes harder to push rates. Revenue growth slows. Cap rates widen during sale or refi.
A percent stock number above 1 or 2 percent is often a warning sign in many regions. It points to a market bringing in new space faster than it can absorb it. Developers chase opportunity and create short-term pressure on rates.
A percent stock number below 0.5 percent signals a tighter market. Supply grows more slowly than demand. Operators push rates with less resistance. Stabilized properties see stronger valuations. Lenders look favorably on performance during refi.
NRSF per capita also matters. When NRSF per capita trends down, it means more people are entering the market without matching the new supply. This supports stronger occupancy and stronger street rates.
You make better decisions when you track the percent stock next to NRSF per capita. These two data points give you a clear read on supply, demand, and future pricing power. They help you choose stronger sites and plan for long-term growth.
Here's the math:
You take the total net rentable square feet of new deliveries in the period. You divide it by the total existing net rentable square feet in the market at the start of the period. Then you convert it to a percentage.
Example:
• A market starts the year with 6 million NRSF.
• Developers deliver 120,000 NRSF that year.
• 120,000 divided by 6,000,000 equals 0.02.
• Percent stock equals 2 percent.
You see how fast supply grows compared to the base already built. This helps you read pressure on occupancy, rates, and future revenue.
At Storage Authority, we are collaborating with our franchise owners and guiding them every step of the way. Not only are we looking for the grand slam parcels to develop on, we are also avoiding the land mines that cripple develpment budgets.
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