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.
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