A new report from illustrates that recent self-storage property completions put downward pressure on rents in November 2018.
Overall U.S. street-rate rents for 10x10 non-climate-controlled units declined by 4.1 percent year-over-year that month while rents for climate-controlled units of similar size dropped by 2.2 percent.
Growing secondary markets continue to have a strong appetite for self storage space, however, while demand also remains strong in historically under-penetrated markets with large urban clusters such as Boston and New York City.
Units under construction and in the planning stages currently account for 9.7 percent of the existing national inventory, a 10-basis-point increase over November, reflecting construction starts in high-demand markets. Development activity is highest in Portland, Ore.; Nashville, Tenn.; Orlando, Fla.; Seattle; and Miami.
The December 2018 report, which is , compiles data from more than 26,000 U.S. self storage properties, including more than 2,000 properties in the development pipeline.
Yardi Matrix is the industry's most comprehensive business development and asset management tool for investment professionals, equity investors, lenders and property managers who underwrite and manage real estate investments in multifamily, industrial, office and self storage.
