Self-Storage Still Has Plenty of Run Room
December 23, 2021| Paul Bergeron | GlobeSt.com
Moody’s expects to see the supply of new stock in self-storage consistently decrease as the industry expands over the next several years and the vacancy rate to follow suit.
The vacancy rate is expected to reach 11.5% by 2025 and 10.1% by the end of the 10-year forecast in 2030.
In light of strong results in the first three-fourths of this year, 10×10 climate-controlled rents are projected to end 2021 by growing to 8%, implying the possibility of a slow-down in growth in the final quarter of the year.
Similarly, 10×10 non-climate-controlled rents are projected to finish the year growing by 7%, which again implies that these units will also experience decreased demand in the fourth quarter.
