Real Estate

Last updated: April 2008

Overview

The mobile and modular industry provides non-residential factory built structures for use in education, healthcare, retail, government, construction, and manufacturing, to name a few. The industry continues to experience growth unlike the residential market. While growth is slowing in some sectors, overall, dealers, manufacturers, and lessors are reporting growth in both revenue and unit sales and leasing.

Industry Condition – Good

Key Industry Indicators

• Construction Spending
  In March 2008, the value of private nonresidential construction put in place increased by more than 15% over the prior year. Construction historically accounts for approximately 35% of the leasing revenue in this industry.
• Classroom Size Initiatives
  Forty states now have class size reduction initiatives as school population growth continues to increase. Leasing revenue to the education sector has been increasing steadily, reaching 24% of total revenues in 2007.
• Infrastructure Spending
  High growth states' infrastructure requirements continue to grow, expanding the need for construction related units.

New Equipment Demand

• Manufacturers of mobile and modular structures are forecasting 4% revenue growth in the coming 12 months after experiencing 8% unit growth in the last 12 months.
• Dealers are forecasting 7% leasing revenue growth and 9% unit sales growth in the coming 12 months. Dealers are also forecasting that fleet spending will increase 19% this year.

Overview

The price of units in the secondary market continues to hold steady despite a small decline in fleet utilization rates over the last year. The industry continues to experience average utilization in the low 80% range.

Used Equipment Values – Good

• Supply of used equipment – Increasing
• Demand for used equipment – Increasing

Secondary Market Value Indicators

• Past 12-Months – Increasing Unit Values are up approximately 5%
• Past 3-Months – Increasing Unit values are up approximately 2%

Factors Influencing Value & Marketability

• Type
• Size
• Condition
• Quantity

Valuation Monitor

AccuVal routinely provides appraisal, consulting, and asset management services to companies in the Mobile and Modular industry. View industries serviced >>

Representative Clients Our Associates Have Served

• Williams Scotsman, Inc.
• Modular Space Corporation
• Vanguard Leasing, Inc.

Success Stories

• Provided Valuation Services on an Expedited Basis as Part of the Acquisition of GE Modular by Resun Leasing to form Modular Space Corporation.
• Assisted Lender Consortium in Capitalization of $1.5 Billion Facility for Merger of Two Major Industry Leaders
• View all Success Stories