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.
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