Low-development Western metros boast the highest listed rates
SANTA BARBARA, Calif., July 29, 2019 – Demand for self storage space remains strong in most U.S. metros, but a new report from Yardi® Matrix cautions that “the continually high levels of development indicate the industry will face a rocky road for the foreseeable future.”
Such development has led to declining year-over-year street rates in some metros, most notably Houston and Pittsburgh. Significant new supply is also beginning to dampen rates in New York City and Boston. National street rates dropped 1.7% year-over-year in June 2019 for standard 10×10 non-climate controlled units, with about 60% of the top metros tracked by Yardi Matrix experiencing decreases.
“Rents are likely to face increased pressure over the summer, especially in pockets of elevated deliveries,” the report says.
Listed rates are highest in low-development West Coast markets including California metros San Francisco, Los Angeles and San Jose. Las Vegas’ friendly business environment and affordable cost of living compared to coastal California metros continue to drive self storage demand and rent growth. Colorado’s expanding economy and population growth have prompted developers to break ground on new projects.
Learn more about how development is intensifying in undersupplied secondary markets, and more, in the full Yardi Matrix national self storage report for July 2019. The report compiles data from more than 26,000 U.S. self storage properties, including more than 2,000 properties in the development pipeline.
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, 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.