A COVID-driven boost in demand has helped self storage grow rents in a challenging economy
SANTA BARBARA, Calif., March 15, 2021 – The self storage industry continues to improve on its 2020 performance, according to the latest National Self Storage Report from real estate data provider Yardi® Matrix. Along with the industrial sector, it remains one of the bright spots for real estate investors.
National street rates for 10×10 non-climate-controlled (NON-CC) units increased by 2.6% compared to February 2020, and rates for 10×10 climate-controlled (CC) units grew by 3.1% over last year. While street rates nationwide saw substantial growth year-over-year, rates for both unit types remained flat month-over-month. California’s Inland Empire led the top markets for annual street rate performance in February.
Development activity remained stable across the nation in February, despite 17 projects that fell off the new-supply pipeline.
“The strong performance of the storage sector offers promise as we move further into 2021. However, there is some uncertainty as to whether storage demand can maintain current levels as the core markets begin to recover, which may be a headwind for the industry in the future,” say Matrix analysts.
Nationwide, Yardi Matrix tracks a total of 2,237 self storage properties in various stages of development: 597 under construction, 1,201 planned and 439 prospective properties. The national new-supply pipeline as a percent of existing stock increased 0.1% month-over-month in February, and the share of existing projects in planning or under construction stages accounted for 8.4% of existing inventory. Matrix also maintains operational profiles for 26,534 completed self storage facilities across the United States, bringing the total data set to 28,771.
Those interested in gaining additional insight into trends and expectations for self storage can register for a free Matrix Self Storage National Outlook webinar on Wednesday, March 24.
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.
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.