Strong population growth and positive economic conditions in the West have investors scouring the region for opportunities in the self-storage sector. In 2003, investors committed approximately 70% of total capital allocated to self-storage to the West.

Construction of new units has been aggressive in some multifamily markets in early 2004. Washington, D.C., leads the nation with 15,704 units under construction.

Metro	Units Under Construction
Washington, D.C.	15,704
Houston	15,036
South Florida	14,458
Dallas/Fort Worth	12,119
Los Angeles	10,101
Source: M/PF Research

The number of available net-lease properties increased 8.3% between the fourth quarter of 2003 and the first quarter of 2004, as sellers entered the market to take advantage of the low cap-rate environment, reports The Boulder Group. A total of 3,462 net-lease properties — with a combined value of more than $11.5 billion — were available nationwide in the first quarter, up from 3,175 and a value of $11.2 billion.

Commercial real estate experts favor investment over new development in all property types, according to a survey of senior-level executives conducted by the National Association of Industrial and Office Properties (NAIOP) and compiled by CB Richard Ellis Investors. Respondents to the survey, conducted in early 2004, expressed a growing interest in the development of warehouse/distribution space and biotech/life science facilities.

In the United States, tourism is currently the third-largest retail industry, behind automotive and food stores. Travel and tourism is the nation's largest services export industry. In 2002, the lodging industry grossed $142 billion in pretax profits, according to Smith Travel Research.

Typical Business Traveler		1999	2001	2002*
Male		60%	70%	71%
Age 35-54		52%	53%	54%
Average Annual Income		$72,240	$76,394	$81,600
Travels Alone		81%	62%	61%
Makes Reservations		91%	92%	91%
Average Price of Room		$91	$95	$93
Length of Stay
	One Night	36%	42%	42%
	Two Nights	25%	25%	25%
	Three or More Nights	39%	33%	33%
Typical Leisure Traveler
Two Adults		50%	51%	52%
Age 35-54		42%	46%	43%
Average Annual Income		$64,386	$69,147	$71,600
Travels By Car		75%	74%	74%
Makes Reservations		83%	83%	83%
Average Price of Room		$84	$87	$85
Length of Stay
	One Night	43%	47%	46%
	Two Nights	28%	27%	27%
	Three or More Nights	29%	26%	27%
*Most recent data available
Source: American Hotel & Lodging Association

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