New deliveries continue to weigh on street rates in almost all markets of the self-storage sector, reported Yari Matrix. While new ground-up projects are impacting many secondary markets, older and highly regulated markets’ storage inventories are growing through conversions and expansions.
Compared with the previous month, the new-supply pipeline as a percent of existing inventory increased by a slight 0.1 percent. The share of projects in various stages of development accounts for 9.4 percent of total stock.
In Nashville (21 percent of stock), a growing and diversifying economy continues to support strong population gains and household formations, boosting demand for storage space. The metro added more than 23,000 jobs in the 12 months ending in May, with leisure and hospitality leading the way in job gains (6,900 new positions). As of September, there were 17 projects under construction in Nashville, with an additional 16 in the planning stages. While demand drive
