U.S. Self Storage Demand Rises on Population and Employment Gains, Yardi Matrix Reports
New supply drives rent rates down in most markets
SANTA BARBARA, Calif., Nov. 20, 2018 – A new report from Yardi® Matrix shows that demand for self storage space continues to be driven by growing secondary markets with solid employment gains that fuel in-migration, along with low-supply metros with large urban clusters.
Demand for self storage space remains high in cities with strong population growth, such as Portland, Ore., and Nashville, Tenn. Millennials drawn by high-paying employment and students attending local colleges and universities have fueled new construction in Seattle and Boston, a historically underpenetrated market.
Street-rate rents for 10×10 non-climate-controlled units fell by 4.9% year-over-year in October 2018 as new deliveries continued to brake rent growth. Rents for climate-controlled units of similar size fell by 2.9%.
Units under construction and in the planning stages accounted for 9.6% of the existing national inventory in October, a 10-basis-point increase over the previous month.
The November 2018 report, which is available for download, compiles data from more than 2,000 U.S. self storage properties in the pipeline, along with 339 abandoned stores. Yardi Matrix also maintains operational profiles on an additional 24,644 completed properties.
Yardi Matrix is the industry’s most comprehensive business development and asset management tool for investment professionals, equity investors, lenders and property managers who underwrite and manage real estate investments in multifamily, industrial, office and self storage. 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.