COVID-19 Hits Self-Storage, But Market Is ‘Resilient’
“While there is disruption in the overall economy, the need for self-storage space will continue and address changing needs by users,” the Cushman & Wakefield report said.
June 19, 2020 | Mike Scarcella | GlobeSt.com
The coronavirus pandemic has depressed rental activity in the $39 billion self-storage space and some tenants could vacate units, Cushman & Wakefield said in a midyear national report published this week.
The market analysis predicted “near-term shocks” to net operating income, “including flattening or declining rental rates for the remainder of the year.”
“The increase in delinquency rates in April were not as pronounced as the market feared with the true impact to surface in May and June,” according to the Cushman & Wakefield report, whose authors included vice chairman Michael Mele; Luke Elliott, executive managing director; and Chris Owen, director of Florida research. “COVID-19 related declines in traffic and leasing, as well as a rise in collections will have an immediate impact.”
