Development activity is highest in areas with strong population growth and low market penetration
SANTA BARBARA, Calif., Sept. 28, 2018 – A new report from Yardi® Matrix illustrates an overall decline in U.S. self storage rent rates in August 2018.
The report, which compiles data from more than 2,100 self storage properties in the pipeline, shows that absorption of new supply led to a 4.1% year-over-year rent rate decline for 10×10 non-climate controlled units and a 2.8% dip for climate controlled units of similar size. However, demand for self storage space continues to be high in historically undersupplied metros and secondary markets with fast-paced population growth.
Nashville, Tenn.; Portland, Ore.; Boston; Raleigh-Durham, N.C.; and Orlando, Fla., were the most active areas for development among 31 major metros in August. San Francisco, Los Angeles and California’s Inland Empire had the lowest percentage of self storage projects under construction or in the planning stages due to land-use barriers and development limitations.
Units planned or under construction accounted for 9.3% of the existing national inventory in August, a 20-basis-point increase over the previous month.
The full national self storage report for September 2018 is available for download.
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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