Rental rates for self-storage units in Arizona have increased 15 percent since 2013, though the pace of growth has slowed during the last three years, according to data released this week by SpareFoot, an online marketplace for self-storage consumers. The average monthly unit rate across the state this year is $72.60, a bump of $1 (1.2 percent) from last year. By comparison, rates grew 5.4 percent in 2015 and 4.4 percent last year.
Rates across Arizona were mostly flat through the Great Recession to 2014 due to a surplus of storage development prior to the financial crisis. Since then, steady increases have coincided with population growth and high occupancy rates, according to the data. The unit price per square foot has grown from 69 cents in 2014 to 79 cents this year, a 14.5 percent increase. The 2017 figure is the highest since 2010.
Within the state’s local markets, Scottsdale, an affluent area northeast of Phoenix, commands the highest self-storage rental rates at $116 per month. Despite the high price, the city’s rates grew 5 percent year over year. Mesa had the largest price increase this year, jumping from an average of $67.44 in 2016 to $75.22, an 11.5 percent increase. The trajectory of rental rates in Phoenix and Tucson have closely mirrored each other, growing 23.5 percent and 16 percent, respectively, between 2014 and 2016, before falling 4 percent this year.
The most popular unit size in Arizona is a 5-by-10, representing 31 percent of rentals, according to the source.
SpareFoot also released data on California self-storage rental rates last month.
SpareFoot.com helps consumers find and reserve self-storage units, with comparison shopping tools that show real-time availability and exclusive deals. With a network of more than 12,000 storage facilities ranging from mom-and-pop operations to real estate investment trusts, the company reaches prospective storage renters though partnerships with brands including SelfStorage.com and Penske Truck Rental.
Sources:
- SpareFoot: Arizona Self-Storage Facts & Figures
- SpareFoot Storage Beat: Self-Storage Prices Continue to Grow in Arizona for the Third Year in a Row
