As the traditional busy season begins for the self-storage sector, street rates continued to increase nationwide in April, according to Yardi. There is no slowdown in momentum for the sector, which continues to see strong demand among new customers as well as an uptick in both renewals and length of stay among existing customers.
According to industry executives at the NYSSA investment forum this month, demand comes not only from traditional drivers such as migration and students, as households need space to store items while in transit between homes and apartments, but also from individuals who need storage to accommodate home offices and businesses that have been squeezed out of the tight industrial market. Plus, they said, existing customers are renewing at high rates and extending the length of stays. It all points to continued growth in rents and net operating income, which has increased upward of 20 percent for some REITs over the past year, per recent earnings calls.
