Project completions drive street rates down in approximately 75% of top
markets
SANTA BARBARA, Calif.,
Jan. 7, 2020 – New supply
continues to depress U.S. self storage street rates, which dropped in about 75%
of the top markets that Yardi® Matrix tracked in November 2019.
Street rates for
standard 10×10 non-climate-controlled units fell 1.7% year-over-year in
November. The drop for similar-size climate-controlled units was even steeper. Only
Las Vegas, Los Angeles and California’s Inland Empire among the 31 top markets had
year-over-year rate growth in both unit categories.
Self storage
projects under construction or in the planning stages accounted for 9% of the
total nationwide stock in November, a 0.2% month-over-month increase. “Ongoing
heightened completion levels continue to weigh on street rates and the storage
industry is in for a continued tough slog,” the report says.
Download the Yardi
Matrix national
self storage report for December 2019 to learn why
New York City saw a big increase in development activity in November, which
metros had the highest and lowest street rates, and
more.
Yardi Matrix offers the industry’s
most comprehensive market intelligence tool for investment professionals, equity
investors, lenders and property managers who underwrite and manage investments
in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial,
office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops and
supports industry-leading investment and property management software for all
types and sizes of real estate companies. Established in 1984, Yardi is based
in Santa Barbara, Calif., and serves clients worldwide. For more information on
how Yardi is Energized for Tomorrow, visit yardi.com.