Impacts of COVID-19 on Self Storage Begin to Emerge, According to Yardi Matrix

Negative street rate performance in April is first
indicator that the industry will not be unaffected by the pandemic and
accompanying national shutdown

SANTA BARBARA, Calif.,
May 22, 2020 – National stay
at home orders made American life drastically different in April 2020, and that
included slowing demand and a rate hit for the self storage industry, according
to the latest Yardi Matrix® National Self Storage Report.

While the
industry looked stable in March, things shifted in April. National street rates
for 10×10 non climate controlled (CC) units fell 2.6 percent, and rates for
10×10 CC units fell 6 percent. That was the largest decline in more than three
years. The impact was nearly universal, as street rates for non-CC units fell
in 97 percent of the major markets tracked by Yardi Matrix, and CC units saw
declines in every market tracked.

Nationwide, Yardi
Matrix tracks a total of 2,209 self storage properties in various stages of
development, comprising 593 under construction, 1,172 planned and 444
prospective properties. Matrix also maintains operational profiles for 25,914
operating self storage businesses, bringing the total data set to 28,123.

The COVID-19 crisis has yet to
slow self storage development, however, as properties under construction or in the
planning stages account for 9 percent of the market in April, a 20-basis-point
increase over March.

“As the United States shifts its focus to reopening the economy,
there is hope that storage fundamentals will rebound, but there will likely be
troubles felt over the next few months as pandemic disruptions continue,” states
the report.

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.