Fast-Growing Markets Spur Self Storage Demand, Yardi Matrix Reports
Metros with population gains and employment growth spark development activity
SANTA BARBARA, Calif., Jan. 24, 2019 – A new national self storage report from Yardi® Matrix illustrates that fast-growing markets are the principal drivers of demand for new space.
Corporate expansions and relocations, solid multifamily development activity and college student enrollment in metros such as Portland, Ore., Nashville, Tenn., and Seattle account for much of the nation’s development activity. Those metros, plus Orlando, Fla., and Boston, are the new-supply pipeline growth leaders, according to the report. Units under construction and in the planning stages represent 9.4% of U.S. inventory, a drop from 9.7% in December.
Overall street rate rents for 10×10 non-climate controlled units declined by 1.7% year-over-year in December 2018 while rents for similar-size climate controlled units fell by 1.5%, a normal seasonal occurrence. California metros San Francisco, Los Angeles and San Jose had the nation’s highest street rates that month.
The January 2019 monthly 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.
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