Self Storage Rents Continue Strong Performance
- Mar 16, 2021
Despite the enduring health crisis and ensuing economic fallout, the self storage sector remained resilient in February. For the fifth month in a row, the national street rate performance was positive for both 10×10 non-climate-controlled and climate-controlled units, up 2.6 percent and 3.1 percent on a year-over-year basis. Overall, annual street rate performance was positive in about 90 percent of the top markets tracked by Yardi Matrix. On a month-over-month basis, however, street rates remained flat for both 10×10 climate- and non-climate-controlled units.
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The Inland Empire continued to benefit from the ongoing exodus from more expensive California markets. Compared to February 2020, street-rate rents grew 6.1 percent for the standard 10×10 non-climate-controlled units and 10.5 percent for the same-sized climate-controlled units. Asking rates were $121 and $158 for non-climate- and climate-controlled units.
Despite having an inventory of 7.5 net square feet per capita, Phoenix had a robust new-supply pipeline, with projects under construction or in the planning stages representing 13.5 percent of existing inventory. However, thanks to high population growth in recent years the metro is well-equipped to withstand the pressures of elevated levels of storage supply. Phoenix saw substantial rent growth for both 10×10 climate- and non-climate-controlled units, up 5.7 percent and 4.8 percent year-over-year in February.
Nationally, projects under construction or in the planning stages accounted for 8.4 percent of existing stock, up by a slight 10-basis-point over the previous month. Although 17 self storage projects were abandoned across the country in February, there’s still no sign of a significant slowdown in development activity. Charleston recorded the largest uptick in development, up 1.7 percent month-over-month. Nonetheless, the metro’s new supply pipeline is still relatively small, projects under construction or in the planning stages accounted for 3.5 percent of total inventory.