Street rates are down for self-storage properties. Will a slowdown in new deliveries provide relief? Yardi Matrix reports that street rates dropped in about 75 percent of the markets it tracks, according to its December National Self Storage Report. Street rates for standard 10×10 non-climate-controlled units fell 1.7 percent year-over-year in November and 3.3 percent…
Recent data indicates a still-healthy housing market, which should generally bode well for the self-storage industry as it looks toward 2020, although housing affordability and constrained inventory are causes for concern. The self-storage industry relies on people moving in and out of homes, often targeting new development close to new homes or apartment buildings. A…
Although new supply has tamped down rents, it isn’t deterring self-storage owners and operators from mining for new opportunities in the sector. New deliveries continue to weigh on street rates, according to Yardi Matrix, producing a 2.5 percent year-over-year decline in street rates for standard 10×10 non-climate controlled space. Still, operators and investors with a…
What does the rest of the year hold for the self-storage sector? To answer the question we checked in with JLL Managing Director Brian Somoza. He co-leads the national self-storage real estate brokerage team at JLL with Steve Mellon, with Mellon based in Houston and Somoza out of Los Angeles. Somoza specializes in investment sales,…
The city of Birmingham unanimously passed a moratorium on new self-storage facilities July 2 to give it time to evaluate its current land use policies and decide whether to pass more stringent self-storage restrictions. The 180-day moratorium, which took effect immediately, restricts new business permitting for self-storage in areas zoned M-2 or I-2 and includes…
Fairway America, founded in 1992 by Matt Burk, CEO and chief investment officer, invests in small balance real estate (SBRE) deals and manages its own discretionary SBRE funds. During its history, it’s helped to structure and create over 150 funds and syndications for SBRE entrepreneurs around the United States. Earlier this year, it created the…
Simplify Valet Storage has launched on-demand services to the five boroughs of New York City with the promise of a three-hour response time for the return of stored items. The company is based in Long Island City and bootstrapped by entrepreneur Donal O’Sullivan, who works in the construction industry. “He built a [storage warehouse] in…
ZipStored opened for business in the state of Texas in mid-January, the latest entrant in the growing on-demand self-storage segment, but it differs from some of its competitors in how it stores goods. Just as Uber drivers use their personal cars and Airbnb hosts rent out excess space in their homes, ZipStored is tapping into…
More change is in the air for the self-storage industry. In mid-January, Newmark Knight Frank added Chris Sonne and Jonathan Lang to its Valuation & Advisory Self-storage practice. Both moved to NKF’s Irvine, California, office from CBRE’s Newport Beach office. NKF created a self-storage valuation specialty about six months ago and has added several industry…
Investors getting whipsawed by the stock market could push to diversify more heavily into real estate in 2019, and if they do, self-storage could be the ticket for higher returns than institutional-grade property types. The Dow Jones Industrial Average (DJIA) finished 2018 down 3.5 percent and lost 13 percent of its value between October and…
