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What’s Driving Down Self Storage Rents?

New self storage deliveries pushed U.S. rent rates down in September 2018, according to research by Santa Barbara, CA-based Yardi Matrix. The report, a compilation of data from more than 2,000 self storage properties in the pipeline, shows that rent rates for 10-foot by 10-foot non-climate-controlled units declined by 4.8% year-over-year. Rents for climate-controlled units of similar size fell by 3.5%.

Development activity for self storage properties “continues to be highest in underpenetrated markets with strong employment growth, which attracts a large influx of new residents. Demand is also on the rise in fast-growing cities that are seeing a surge in multifamily construction,” the report says.

The heaviest development is occurring in millennial migration targets such as Portland, and Nashville. In September, those two metros, plus Orlando, Boston and Seattle, reported the highest percentage of units under construction and planned as a percent of existing inventory among 31 major metros. California’s Inland Empire, Los Angeles and Chicago had the lowest percentage.

Units planned or under construction accounted for 9.5% of the existing national inventory in September, up from 9.3% in August, notes Yardi Matrix.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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