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Unparalleled Site Selection Insights
The Challenge
A leading self-storage acquisition, development and management company was seeking entry into the Riverside, CA market. The company met with Powerlytics to help answer two questions:
- Is Riverside, CA a good location within the Riverside–San Bernardino–Ontario MSA?
- If so, what are ideal locations for self-storage placement within the city of Riverside?
The Solution
Using only a small subset of its 5,000+ variables, Powerlytics was able to analyze current income metrics and trends to develop high-level conclusions.
Key factors considered included:
- Avg. household income
- Household income 5-year CAGR
- % of income from W2 as a measure of income stability
Riverside showed some similar income dynamics as the broader county and MSA
- Riverside, CA has slightly lower overall household income and a lower % of homeowners as compared to Riverside County.
- However, 5-year CAGR is higher and W2 income is a higher percentage of total household income
- Riverside total household income is similar total Riverside–San Bernardino–Ontario MSA ($62,341).
The Outcomes
- Riverside, CA has similar income dynamics to the broader Riverside County and broader MSA
- Five Riverside ZIP Codes covering a 6 x 2-mile area exhibit the optimal combination of income and growth (92503, 92504, 92506, 92508, 92518) to render them attractive for placement of a self-storage facility.
- Within these five highest income ZIP Codes, 92503 and 92508 demonstrate potential economic stability as measured by % owners and W2 as % of total income.
The second phase is developing an algorithm to identify the optimal locations for future self-storage placement across the entire US.
Data could be used to develop a model that would rank all 40 million US 9-digit ZIP Codes in order of attractiveness, enabling the Self-Storage Provider to inform both site selection and marketing to potential self-storage customers.
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