Demand remains high, street rates are rising and development is strong nationwide
SANTA BARBARA, Calif., April 21, 2021 – Self storage street rates continued to rise nationwide in March, indicating that demand prompted by pandemic relocations and household adjustments is not yet slowing down.
“The storage industry was still riding these demand tailwinds through the first quarter of 2021, with fundamentals performing very well,” states the latest Yardi Matrix National Self Storage report.
National street rates for 10×10 non-climate-controlled (NON CC) units increased by 2.6% compared to March 2020, and rates nationwide for 10×10 climate-controlled (CC) units grew by 3.1% year-over-year. On a monthly basis, national street rates for 10×10 NON CC units remained flat, while rates for 10×10 CC units saw a 0.8% uptick.
Development in the sector also remains strong. The national new-supply pipeline as a percent of existing inventory increased by 0.2% month-over-month in March, and the share of existing projects in planning or construction stages was equal to 8.4% of existing inventory. This is a minor uptick compared to the 0.1% increase seen in the first two months of the year.
“While the outlook for storage appears to be bright, with the sector performing at or above pre-pandemic levels, some remain cautious. As the economy continues to recover, it is uncertain if demand will be sustained, potentially intensifying the supply headwinds storage will likely face in the long term,” say Matrix analysts.
Nationally, Yardi Matrix tracks a total of 2,222 self storage properties in various stages of development—comprising 593 under construction, 1,199 planned and 430 prospective properties. Yardi Matrix also maintains operational profiles for 26,604 completed self storage facilities across the United States, bringing the total data set to 28,826.
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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