Marcus & Millichap Special Report: Self-Storage National Report 3Q 2022
September 6, 2022 | Marcus & Millichap
Self-Storage Properties Attract Broadening Range of Capital; Sector Durability and Inflation Resistance Key
Storage space demand sustains momentum, extends rent climb. The self-storage sector entered the second half of the year in a strong position, having accumulated additional renter demand during the most challenging period of the pandemic. As health conditions and social behaviors normalize, the sector is continuing to outperform previous cycles. The average asking rent for a standard 10-foot by 10-foot unit in June was up 15 percent compared to the end of 2019. Over that same span, vacancy contracted 190 basis points to 6.6 percent. In the preceding four years, rents had receded 8 percent, while availability averaged 9.5 percent. Properties have benefited from more prevalent remote work, as well as ongoing population growth and migration. While some of the pandemic-specific demand factors are dissipating, these other demographic trends will continue to support the sector.
