Self Storage Still Riding Tailwinds
Thanks to continuous demand for storage space across the country, street-rate rents maintained momentum.
April 21, 2021 | Evelyn Jozsa | Multi-Housing News
The self storage sector has maintained its positive fundamentals throughout the first quarter of 2021, with continued positive street rate performance across the country. Street-rate rents rose 2.6 percent for the average 10×10 non-climate-controlled and 3.1 percent for the climate-controlled units of similar size, year-over-year as of March. On a month-over-month basis, however, street rates remained flat for the 10×10 non-climate-controlled units, while rates for the same-sized climate-controlled units increased by a modest 0.8 percent.
Considering all U.S. storage markets, San Francisco saw the second-highest average street rate for 10×10 non-climate-controlled units, lagging only Honolulu. The San Francisco Peninsula and the East Bay recorded a 5.2-percent rent growth year-over-year, with asking rates reaching $203.
After experiencing major setbacks due to heavy storage deliveries in recent years, Houston registered the largest rent growth in March since June 2017. On a year-over-year basis, street rates increased 3.6 percent for the average 10×10 non-climate-controlled and 5 percent for the climate-controlled units of similar size.
