High levels of recent deliveries could spark cost reductions and efficiency measures
SANTA BARBARA, Calif., Sept. 24, 2019 – New deliveries, plus conversions and expansions, continue to chill street rate growth in nearly all U.S. self storage markets, according to a new report from Yardi® Matrix.
The report documents a 1.7% year-over-year national street rate contraction in September for standard 10×10 non-climate controlled units, with rates for similar-size climate-controlled units falling 2.9%. Street rates decreased in about 75% of the top 31 metros tracked by Yardi Matrix, with Charleston, S.C., experiencing the steepest decline, 11.3%. Only two of the top metros—Las Vegas and California’s Inland Empire, both of which are experiencing strong population gains and domestic in-migration—boasted year-over-year street rate growth.
With deliveries expected to remain elevated and increase pricing pressures, store owners and operators are seeking to “increase efficiency and reduce operating costs in order to drive performance,” says the report, which compiles data from more than 27,000 U.S. self storage projects that are completed or in various stages of development.
More information about development activity, street rates and individual metros, including Charleston, Seattle, Nashville, Tenn., and Miami, is available in the national self storage report for September 2019.
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.
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