Unlike many other commercial real estate asset types, self-storage experienced a boost in demand due to the pandemic-related disruptions in 2020, according to Yardi Matrix.
The self-storage industry was still riding these demand tailwinds through first quarter 2021, with fundamentals performing very well. In March, street rates across the nation continued to trend upwards, and development has yet to experience a major slowdown, despite increasing construction material costs.
While the outlook for storage appears to be bright, with the sector performing at or above pre-pandemic levels, some remain cautious in their optimism. As the economy continues to recover, it is uncertain if demand will be sustained, potentially intensifying the supply headwinds storage will likely face in the long term.
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