Demand is driven by many factors, including new household formation, students returning to campus, cross-country moves and more
SANTA BARBARA, Calif., Nov. 18, 2021 – Self storage continued to perform well in October, though street rate gains have backed off from the cycle-high marks recorded in summer 2021, Yardi® Matrix reports.
National street rates for 10×10 non-climate-controlled (NON CC) units increased 8.5% compared to October 2020, while rates for similar-size climate-controlled (CC) units grew 9.8% over the same period. The climate-controlled 10×10 rate dipped under double-digit gains for the first time in seven months.
Demand is driven by many factors, including the economy, new household formation, students returning to campus, increased consumer spending, and moves by Americans to rapidly growing markets in the Southeast, Southwest and West.
Fourteen of the top 30 U.S. markets saw rates increase by at least 10% year-over-year, led by Tampa (16% year-over- year) in the CC unit category and by Miami (20%) in the NON CC unit category.
“We expect the above-average gains will slowly shrink back closer to the long- term average in coming months,” Matrix analysts state.
Yardi Matrix tracks a total of 2,399 self storage properties nationwide in various stages of development—comprising 663 under construction, 1,248 planned and 488 prospective properties. Matrix also maintains operational profiles for 27,117 completed self storage facilities across the United States, bringing the total data set to 29,516.
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 [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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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.