Self storage sector continues to feel impact from the COVID-19 pandemic
SANTA BARBARA, Calif., June 23, 2020 – In spite of being deemed more resilient to economic uncertainty than other real estate asset types, the novel coronavirus crisis and its resultant economic fallout continued to affect the self storage industry in May, according to the latest Yardi Matrix® National Self Storage Report.
On a year-over-year basis, national street rates contracted by 4.3% for 10×10 non-climate-controlled (NON CC) units, while nationwide street rates for 10×10 climate-controlled (CC) units dropped 6.7% on an annual basis. On a month-over-month basis in May, national street rates dropped by 0.9% for 10×10 NON CC units and by 0.8% for 10×10 CC units.
“Despite economic concerns, developers keep on building,” states the report. The new-supply pipeline seems to be proving less susceptible to the COVID-19 crash than street rate performance, since the national new-supply pipeline as a percent of existing inventory increased by 0.2% month-over-month in May to 9.0%.
Nationwide, Yardi Matrix tracks a total of 2,214 self storage properties in various stages of development, comprising 596 under construction, 1,171 planned and 447 prospective properties. Matrix also maintains operational profiles for 25,969 operating self storage businesses, bringing the total data set to 28,183.
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