- June 1, 2017: Vol. 29, Number 6

To read this full article you need to be subscribed to Institutional Real Estate Americas

Self-storage sector continues to strengthen

by Andrea Waitrovich

Demand for self-storage properties continues to strengthen, but mounting supply pressures are a growing concern, according to Marcus & Millichap’s midyear 2017 outlook for the self-storage industry.

Although new supply has not been enough to overwhelm pent-up demand, construction may have a greater impact in the future. The 2017 U.S. Self-Storage Midyear Outlook notes: “Positive demographic trends and the strength of the multifamily market will stimulate further need for storage space. Strong population growth and rising incomes foster a broad and widening tenant pool. In addition, the retirement and downsizing of baby boomers, plus the continued emergence of millennial households, will sustain demand for self-storage space.”

The report notes tightening of U.S. vacancy — which reached a historical low this year — will be a problem for investors in the face of supply-side headwinds, which may lead to additional concessions and a softening of reven

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy