Self Storage Rents Continue Strong Performance
The year-over-year street rate performance was positive in about 90 percent of the top markets tracked by Yardi Matrix.
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.