Despite the volatile market conditions brought about by COVID-19, the self-storage industry has continued to demonstrate its resilience for the ending quarter of 2020. On a year-by-year basis, rents have increased 1.7% for 10×10 non-climate-controlled units, while rates for the climate-controlled units of the same size remained unchanged. Similarly, on a month-by-month basis, rents grew 0.9% for the 10×10 non-climate-controlled units, while rates for climate-controlled units were flat.
Take the state of Texas for example. After several years of negative rent performance, all of the top four Texas markets—Austin, Dallas-Fort Worth, Houston, and San Antonio experienced positive rate performance in November 2020. The extended period of negative rent performance was due to the substantial inventory expansion during the self-storage development boom in 2018, which led to a significant imbalance in supply and demand across Texas.
Columbus, Ohio is another markets with noteworthy rent growth. There, year-by-year rates for the average 10×10 climate-controlled units increased 1.8%, while month-by-month rates for the same unit type performed even better, increasing 3.7%.
Nationwide, planned and under construction projects accounted for 8.3% of existing inventory, up 10 points over the previous month. Although a total of 53 self-storage projects were abandoned over the past three months, overall development activity seems to be unaffected across the United States. Nonetheless, developers should remain cautious as the economy is still not immune to the pandemic-driven
If you are looking for a cost-effective storage option, don’t overlook a storage unit from Mindful Workspaces & Storage. They provide key solutions to many business issues such as extra office space. And remember that storage containers do not require much to set up and are a great temporary alternative for businesses that require storage.