Self Storage industry feeling the impact of COVID-19

In a recent article by Evelyn Jozsa of Commercial Property Executive, the impact of Covid-19 on the Self Storage industry was addressed. It appears that Self Storage rents are not  immune to the affects of the pandemic. Jozsa states that over the past 12 months, street-rate rents dropped 2.6 percent for the average 10×10 non-climate-controlled and 6 percent for climate-controlled units of similar size. On a year-over-year basis, street rate performance for standard non-climate-controlled units was negative in roughly 97 percent of the top markets tracked by Yardi Matrix.

It seems that cities with the highest concentration of at-risk employment sectors had the greatest declines in rent rates. In Orlando,  where they have a heavily tourism-dependent economy, street-rate rents fell 6.7 percent for 10×10 non-climate-controlled and 10.1 percent for climate-controlled units of similar size.

According to Yardi Matrix’s most recent new-supply forecasts, deliveries will drop by 10 percent in 2020, and by about 40 percent over the next five years. Oversupplied markets, however, could greatly benefit from a decline in self storage constructions.

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