Update 11/21/18 – Yardi has released a new “National Self Storage Report” examining the impact of self-storage supply nationwide. The six-page report compiles data from more than 2,000 properties in the supply pipeline and 339 “abandoned” facilities, according to a press release.
Storage demand remains high in cities experiencing strong population growth, including Nashville, Tenn., and Portland, Ore. In addition, “Millennials, drawn by high-paying employment, and students attending local colleges and universities have fueled new construction in Seattle and Boston, a historically underpenetrated market,” the release stated.
Overall, street rates for 10-by-10 traditional units fell 4.9 percent in October compared to a year ago, “as new deliveries continued to brake rent growth.” By comparison, rental rates for 10-by-10 climate-controlled units fell 2.9 percent.
On the development front, facilities either under construction or in the planning stages accounted for 9.6 percent of the national inventory last month, a 10-basis-point increase over September.
The report is available in PDF format as a free download from the Yardi Matrix website.
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6/13/18 – Yardi Systems Inc., which provides management software for self-storage and other types of real estate, has released a “National Self Storage Report” through its Yardi Matrix self-storage data-services platform examining the impact of self-storage supply across the United States. The six-page report includes information on development projects and rental rates for 31 markets.
New-supply activity is heaviest in “fast-growing” and “historically underdeveloped” urban markets, according to data collected from more than 2,100 tracked properties in the development pipeline. Areas with the strongest influx of new supply are Boston, Denver, Nashville, Tenn.; Portland, Ore.; and Raleigh-Durham, N.C., according to a press release.
Several California markets have the lowest percentage of new supply either under construction or in the planning stages due to “significant barriers” to entry, Yardi officials said. Areas particularly impacted include the Inland Empire, Los Angeles and San Francisco.
New development coupled with slowing economic drivers have slowed rental-rate growth, which fell 2 percent nationally in April after growing as much as 5 percent last fall, according to the report. Hot rental markets include Las Vegas, Phoenix and Seattle, which achieved average rate increases of 5 percent to 10 percent year over year.
The report is available in PDF format as a free download from the Yardi Matrix website.
Yardi Matrix tracks self-storage development activity and rental-rate data in more than 130 markets nationwide.
Yardi Systems develops and supports software for the management of property and real estate investments. Its suite of programs includes accounting, ancillary processes, operations and services with portfolio-wide business intelligence and platform-wide mobility. Based in Santa Barbara, Calif., and founded in 1984, the company serves clients worldwide from offices in Asia, Australia, Europe, the Middle East and North America.
Sources:
PR Newswire, U.S. Self Storage Demand Rises on Population and Employment Gains, Yardi Matrix Reports
PR Newswire, Yardi Matrix Provides a Self Storage Snapshot
Yardi Matrix, Research and Publications
