Impacts of COVID-19 on Self Storage Begin to Emerge, According to Yardi Matrix

Negative street rate performance in April is first indicator that the industry will not be unaffected by the pandemic and accompanying national shutdown

SANTA BARBARA, Calif., May 22, 2020 – National stay at home orders made American life drastically different in April 2020, and that included slowing demand and a rate hit for the self storage industry, according to the latest Yardi Matrix® National Self Storage Report.

While the industry looked stable in March, things shifted in April. National street rates for 10×10 non climate controlled (CC) units fell 2.6 percent, and rates for 10×10 CC units fell 6 percent. That was the largest decline in more than three years. The impact was nearly universal, as street rates for non-CC units fell in 97 percent of the major markets tracked by Yardi Matrix, and CC units saw declines in every market tracked.

Nationwide, Yardi Matrix tracks a total of 2,209 self storage properties in various stages of development, comprising 593 under construction, 1,172 planned and 444 prospective properties. Matrix also maintains operational profiles for 25,914 operating self storage businesses, bringing the total data set to 28,123.

The COVID-19 crisis has yet to slow self storage development, however, as properties under construction or in the planning stages account for 9 percent of the market in April, a 20-basis-point increase over March.

“As the United States shifts its focus to reopening the economy, there is hope that storage fundamentals will rebound, but there will likely be troubles felt over the next few months as pandemic disruptions continue,” states the report.

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, student housing, 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.