Self-Storage Continues to Have a Good Pandemic
It’s not just Bill Gates’ investment either
November 25, 2020 | Tom Acitelli | Commercial Observer
The self-storage industry continues to have a good pandemic, with rising rents and robust demand, but a fresh round of COVID-related lockdowns could negatively impact it.
That’s according to a new monthly report from Yardi Matrix, which tracks self-storage. The report found that national street rates, or rents, for standard 10-by-10, non-climate-controlled, self-storage units increased 2.7 percent in October compared with the same month in 2019. Rates for 10-by-10, climate-controlled units rose 0.8 percent annually in October, the first positive growth in annual rates for this type of unit since the end of 2017.
Rates also increased in major markets, such as New York, Washington, Chicago and San Francisco. What’s more, major self-storage operators, including the real estate investment trusts that dominate the sector, saw increases in demand, according to Yardi Matrix. That demand could lag, though, if there are more lockdowns due to COVID.
