After two years of oftentimes explosive growth, rent rates nationally for self-storage space have stabilized, according to a new report by industry analysis service Yardi Matrix.
During the first month of this year, the average rate decreased by 2.8% over December. From year to year, the decrease was for the same amount.
Rates for 10 foot by 10 foot climate-controlled units dropped by 4.1%, with the rates for units that were not climate-controlled off by a smaller 2.3%. Both forms of units have been on a soft decrease for the last half year.
Regionally, the Nashville market came in first in terms of rate growth, with a 2.9% jump for climate-controlled units; while the Raleigh-Durham metro area saw a 3.1% jump in non-climate controlled units.
Smaller increases were recorded cross-country, from Boston to San Jose, California.
New construction, meanwhile, continues to accelerate, with just over 6,400 self-storage facilities currently in “various stages of development.” Those properties make up 3.7% of the total national inventory.
New York today has the largest inventory of self-storage facilities, with Orlando and Philadelphia rounding out the “top three largest new supply pipelines under construction.”
New self-storage construction projects are popping up everywhere, with a 100,000 facility by the Safe & Secure Self-Storage company going up this month in Coral Springs, Florida; while the U-Haul company is putting up a 17,000 square foot combined warehouse and self-storage building in Coon Rapids, Minnesota.
Los Angeles-based LaTerra Development LLC is currently building five new projects in metro Los Angeles, as well as a new facility in Irving, Texas.
By Garry Boulard
