Millennial Demand Drives Self Storage Growth in Secondary Markets

Areas with solid employment growth see the most development acceleration

SANTA BARBARA, June 25, 2019 – Millennial migration to metros such as Seattle, Portland, Ore., and Nashville, Tenn., is giving secondary markets the strongest development pipelines for U.S. self storage properties, according to a new report from Yardi® Matrix.

The report also details demographic trends, employment gains and sustained economic growth that continue to drive demand for self storage space across the U.S.

Street rates for 10×10 non-climate controlled units fell 0.9% in May 2019. Rate declines “have slowed throughout the first half of 2019, offering hope for positive rate growth in the coming months,” the report says. Properties under construction or in the planning stages account for 9.5% of total inventory, a 10-basis-point decline over the previous month.

The June 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 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, industrial, office and self storage property types. Email matrix@yardi.com, 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.