Product Absorption Driving Decline in U.S. Self Storage Rents, Yardi Matrix Reports
Overall street-rate rents fell in November. Demand remains strong in growing and underpenetrated markets
SANTA BARBARA, Calif., Dec. 26, 2018 – A new report from Yardi® Matrix illustrates that recent self storage property completions put downward pressure on rents in November 2018.
Overall U.S. street-rate rents for 10×10 non-climate-controlled units declined by 4.1% year-over-year that month while rents for climate-controlled units of similar size dropped by 2.2%.
Growing secondary markets continue to have a strong appetite for self storage space, however, while demand also remains strong in historically underpenetrated markets with large urban clusters such as Boston and New York City.
Units under construction and in the planning stages currently account for 9.7% of the existing national inventory, a 10-basis-point increase over November, reflecting construction starts in high-demand markets. Development activity is highest in Portland, Ore.; Nashville, Tenn.; Orlando, Fla.; Seattle; and Miami.
The December 2018 report, 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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