Self Storage Stays Resilient Despite Economic Turmoil, Yardi Matrix Reports

National street rates continue to show improvement
with more markets seeing positive recent and comparative growth

SANTA BARBARA, Calif.,
Sept. 22, 2020 – As COVID-19
continues to disrupt the economy, the self storage sector demonstrates its
ability to surmount economic downturns, with strong monthly and improving
annual street rate performance in August. The latest National Self Storage report from Yardi® Matrix reports that month-over-month,
national rates increased 0.9% for 10×10 non-climate-controlled units and by
0.8% for climate-controlled units of the same size.

San Jose saw the largest
month-over-month rate growth for 10×10 climate-controlled units in August, with
street rates increasing a considerable 4.9% to $171, a jump the South Bay last
experienced in January 2020.

Self storage
properties under construction or in the planning stages nationwide account for
8.8% of existing inventory, marking a 20-basis-point uptick month-over-month.
However, storage development activity has now been negatively impacted by the
economic fallout caused by the pandemic, as the number of abandoned pipeline
projects increased to 33 in August.

“(But overall), despite
the current COVID-19 crisis and the subsequent economic downturn, the self storage
industry continues to hold its own,” the report summarizes.

Nationwide, Yardi
Matrix tracks a total of 2,163 self storage properties in various stages of
development—comprising 594 under construction, 1,167 planned and 402
prospective properties. The national new-supply pipeline as a percent of existing
inventory increased by 0.2% month-over-month in August, and the share of
existing projects in planning and construction stages accounts for 8.8% of
existing inventory. Matrix also maintains operational profiles for 26,167
completed self storage facilities across the United States, bringing the total
data set to 28,330.

Gain detailed
insights into this resilient real estate sector in the new self storage national 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 [email protected], 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.