Demand Paces U.S. Self Storage Industry, Yardi Matrix Reports

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Demand Paces U.S. Self Storage Industry, Yardi Matrix Reports

Metros with bustling economies drive construction activity. Street rates still recovering from discounting in 2018

SANTA BARBARA, Calif., April 3, 2019 โ€“ Metros with strong demographic and employment statistics continue to drive self storage development in the U.S., according to a new report from Yardiยฎ Matrix.

Growing West Coast markets Portland, Ore., and Seattle are among the leading metros for self storage construction activity, as is Nashville, Tenn., which boasts a booming professional and business services sector. Development also remains elevated in large, undersupplied Northeast metros such as New York City and Boston. โ€œConstruction levels have remained relatively steady [nationwide], and the pipeline growth is driven mostly by new planned properties,โ€ the report says.

Nationwide street rate performance is showing signs of improvement after widespread discounting in 2018. While average street rates for 10×10 non-climate controlled units fell by 0.9% year-over-year in February 2019 to $115 per unit, thatโ€™s a step up from the previous monthโ€™s 1.7% decline.

The March 2019 supply and rent recap, which is available for download, compiles data from more than 26,000 U.S. self storage properties, including more than 2,000 properties in the development pipeline.

Yardi Matrix is the industryโ€™s most comprehensive business development and asset management tool for investment professionals, equity investors, lenders and property managers who underwrite and manage real estate investments in multifamily, industrial, office and self storage. ย 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.