By Mike Sunnucks | Rose Law Group Reporter
Phoenix ranks as one of the top markets in the U.S. for self-storage developments and the real estate segment is showing resiliency during the COVID-19 pandemic and its economic impacts.
That is according to a new report by national real estate research firm Yardi Matrix and its sister division StorageCafe.
Phoenix ranks 2nd in the U.S. for new self-storage space coming into the market last year with 2.33 million square feet added, according to the report. Only the New York City metro area added more (3.01 million).
Rental rates at self-storage projects in Phoenix have remained stable even as they have dropped some in other top U.S. markets, according to the research.
Developers continue to add new projects and had been adding more technology options at projects before COVID-19 and social distancing needs hit. The demand for space continues, according to Chris Nebenzahl, institutional research manager at Yardi Matrix.
Self-storage demand seems to be holding up well amid the current pandemic and resulting economic slowdown,” said Nebenzahl.
“While street rates have fallen quickly and dramatically, many operators are reporting strong collections and decent rental activity. Demand is emerging from new sources, including college students that were forced to quickly relocate, as well as businesses like restaurants and retail that have been forced to redesign the interior of their locations,” he said. “So far, we have not seen much housing displacement which has led to storage demand in the past, but that may increase as the year goes on.”
You can check out the report here: https://www.storagecafe.com/blog/rents-decrease-in-the-10-most-active-self-storage-development-markets-in-2019/