Employment gains drive self-storage demand in fast-growing markets

Metros with persisting demographic gains and strong employment continue to lead self-storage development across the nation, according to Yardi Matrix. New-construction activity is highest in the growing West Coast markets of Portland and Seattle and also in Nashville — where the professional and business services sector grew the fastest during the economic boom over the past five years, attracting a large number of high-skilled professionals filling newly formed, high-paying jobs. Construction also remains elevated in large, undersupplied metros in the Northeast.

Nationwide, Yardi Matrix tracks a total of 2,063 self-storage properties in the pipeline —704 under construction, 1,046 in the planning stages and 313 prospective projects — along with 538 abandoned stores. The new-development pipeline has increased by 5.4 percent compared to the previous month, mainly due to an uptick in planned projects. While the pipeline is increasing, the number of abandoned projects is al