While street rates continued to edge negative, new development strength and a slowdown in speed of decline prompt optimism
SANTA BARBARA, Calif., July 20, 2020 – As national lockdown restrictions continued to ease in June and many Americans put moving plans into motion, the bad news and street rate declines slowed down for the self storage industry in June 2020, according to the latest National Self Storage report from industry real estate data leader Yardi® Matrix. New development in the sector also remained solid.
“Despite the continued impact of COVID-19 on the self storage industry, the downward trend in annual street rate performance did not accelerate as drastically compared to previous months,” the report summarizes.
On a year-over-year basis, national street rates contracted by 4.3% for 10×10 non-climate-controlled (NON CC) units in June, while rates for 10×10 climate-controlled (CC) units decreased by 6.7% compared to June 2019.
Annual street rate performance was negative in all of the top markets tracked by Yardi Matrix for 10×10 NON CC units. Minneapolis continues to lead the way in annual street rate reductions, with rates contracting by double digits for both unit categories year-over-year.
Nationwide, Yardi Matrix tracks a total of 2,181 self storage properties in various stages of development—comprising 601 under construction, 1,158 planned and 422 prospective properties. The national new-supply pipeline as a percent of existing inventory increased by a slight 0.1% month-over-month in June, and the share of existing properties in various stages of development accounts for 8.9% of existing inventory. Matrix also maintains operational profiles for 26,034 completed self storage facilities across the United States, bringing the total data set to 28,215.
Gain detailed insights into this resilient market 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.