We’ve had several posts about the self storage industry over the past few years. Now comes a recent report form RentCafé (analyzing the 100 largest markets) that says although inventory is high and rates are lower, demand is keeping the industry strong. RentCafé says the U.S. currently has over 1.4 billion square feet of self storage space, of which 190 million square feet, or 13%, were built within the past five years, which has lowered rent costs. The average national rent for a 10X10, non-climate-controlled unit (non-CC) was $113 in July.
“The sustained property development activity in the self storage sector is also backed up by new demand sources that emerged during the COVID-19 pandemic, such as students relocating on short notice or businesses re-designing their locations to comply with the social distancing rules. Although street rates saw a steep decrease this spring, the summer months showed some signs of recovery, once again proving the industry’s resilience to economic turbulence.”