How Recent Market Changes are Affecting Self-Storage Value, Sales, and More

Commercial Property Executive – Self Storage Beefs Up in Northeast

Michael Legacki of The Hampshire Cos. talks about the peculiarities of the Northeastern self storage market and how the infusion of new players in the sector is changing the game.

Inside Self Storage – Enter, Exit or Adjust? A Summary of Market Trends to Inform Self-Storage Investing Strategy

There’s still strong consumer demand for self-storage and, therefore, many opportunities for new and existing investors. Here’s a summary of market trends for 2019 to help you make smarter investing decisions.

Commercial Property Executive – Self Storage Rents Show Signs of Improvement

While street-rate rents were down 0.9 percent on a year-over-year basis, the rate actually indicates an 80-basis-point improvement compared to the previous month’s rent rate decrease of 1.7 percent.

Zacks – Public Storage (PSA) Up 4.6% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Public Storage. Shares have added about 4.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Public Storage due for a pullback?

The Herald – Rock Hill halts approving more storage sites awaiting answers. Those answers are in.

Meyer told council Monday he found at least a half dozen communities either with a moratorium or detailed studies on storage sites. The Rock Hill study found self-storage is the third largest use in opportunity zones, the federally created census tract districts aimed at redevelopment incentives to help low-income areas.

South China Morning Post – Asia’s self-storage market offers attractive rental yields, Chicago investment firm says

Heitman, which oversees US$41.7 billion in assets, hopes to expand its investments in mini-storage concepts in Asia, adding to a portfolio of such holdings in Australia, Singapore, and Japan. – The Best Markets For Opportunity Zone Investors

A study of Yardi Matrix’s database found that within opportunity zones there are either in place or under construction 1.9 million multifamily units, 960 million square feet of office space and 180 million square feet of self-storage space.

Oregon Business – E-Commerce, Changing Demographics Boost Storage, Warehouse Demand

In Oregon there has been a surge in demand for mini warehouse facilities and self-storage space from business owners who sell or store products sold on the e-commerce site. Amazon charges fees for storing inventory, so many small online retailers buy their own warehouse space or rent self-storage units to fulfill customer orders.

Inside Self Storage – Pushing Through the Growing Pains in the Asia Self-Storage Market

In Asia, the self-storage industry is growing much as it did in other global markets: with challenges faced and hard lessons learned. A member of the region’s self-storage association talks about product awareness and activity in specific Asian countries.

Sparefoot – Private equity sharpens focus on tertiary markets

While institutions are dominating investment in larger metros, private investors are quietly fueling sales activity in smaller tertiary markets where pricing is more attractive and yields are higher.

National Real Estate Investor – Self-Storage Investors Start Looking at Smaller Markets to Capture Higher Yields

Even as worry about over-building spreads, self-storage properties in primary markets go for cap rates as low as 5 percent.

Sparefoot – The tortoise vs. the hare: two approaches to oversupply in self-storage

As this development cycle enters the later stages there are many instances of submarket trade areas where multiple new self-storage projects have been delivered within short-order of each other.

Numerous developer clients that work nationally have raised the question of the impact of these deliveries to their leasing velocity and the timing to attain “economic stabilization” (local market rents at local market occupancies). Having been involved with numerous projects nationally, the opportunity arose to study this in a real world setting on two Northern California projects.

Sydney Morning Herald – Oversupply weighs on self storage sector

The slowing housing market and looming oversupply are weighing on the $1.2 billion a year self-storage sector, with operators forced to discount rates to maintain occupancy levels and average per-metre revenues.

National Real Estate Investor – An Overview of the Self-Storage Market

Highlights from a recent Marcus & Millichap report on the self-storage outlook in 36 markets across the United States. – All Signs Point to Continued Self-Storage Health

“Private businesses are a major source of self-storage demand,” the report states, “and more companies are likely to make use of such facilities this year. The economy supports business expansion, and self-storage offers a cost-effective option compared with office and retail rents.”

Inside Self Storage – A 2019 Real Estate Roadmap for Self-Storage Investors and Owners

A group of self-storage executives recently gathered in Aspen, Colo., and New York City to discuss industry trends, investor sentiment and the overall market outlook for 2019. Here are a few things that’ll shape the investment market this year.