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 – Metros with strong demographic and employment statistics continue to drive self storage development in the U.S., according to a new report from Yardi® 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. “Construction levels have remained relatively steady [nationwide], and the pipeline growth is driven mostly by new planned properties,” 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, that’s a step up from the previous month’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.
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