Phoenix, Arizona is The 2nd Most Active Self Storage Market, NY takes the top spot according to STORAGECafe
This report shows how the 2020 pandemic has affected the Phoenix-Mesa-Chandler self storage market. It seems the PHX self storage inventory is somewhat below demand, so much so that street rates increased by 2.2% y-o-y.
- The Phoenix-Mesa-Chandler metro is the nation’s second-most active self storage market. New developments amounted to 1.8M sq. ft. in 2020. However, this was a marked decline from the 2.3M sq. ft. of storage space delivered in 2019.
- Street prices in PHX experienced a 2.2% year-over-year increase — a big change after 3 years of stagnation — and were hovering around $105/month at the end of 2020.
- The recent uptick in rent increases is most likely related to the strong population growth paired with demand emerging from new sources during the pandemic, including people who needed to maximize space at home as they transitioned to remote work and businesses that needed to reorganize operations.
- Construction slowed down in 2020, with 1.8M sq. ft. delivered, compared to 2.3M sq. ft. delivered in 2019.
- This slowdown, paired with the high demand for storage space, managed to drive the area’s street rates higher by 2.2% in Dec. 2020 ($105) compared to the previous years ($103).
- As for 2021, there are 18 new facilities expected to be delivered, which will amount to about 1.4 million square feet of self storage space.
You can find the full report here: https://www.storagecafe.com/blog/top-10-markets-for-self-storage-development/
The Phoenix self storage market experienced a slowdown in construction in 2020, which was in line with the national trend. However, by the end of the year, street rates experienced a 2.2% rise compared to the previous 3 years when they mostly flatlined.
This is one of the conclusions from the latest STORAGECafé industry report* on self storage market performance in 2020.
*** Update March 2021 ***
STORAGECafé’s latest industry report in which we took a deep dive into transactions and identified the top self storage markets based on surges in investor interest in 2020. As it turns out, Phoenix clocks in fifth for self storage transaction activity.
Here are a few highlights:
- Some 586,130 square feet of storage space traded last year, for a combined $63.2 million.
- The average per-square-foot price jumped 20%, from $90 in 2019 to $120.
- Overall sales activity slowed down during the first few months at the onset of the health crisis, only to pick up again in autumn.
- The self storage sector ended 2020 on a high note in Phoenix, with notable improvement in street rate performance. Asking rates grew 6.4% on a year-over-year basis for the standard 10×10 non-climate-controlled units, to an average of
$117 in December 2020.
You can find the full report here: https://www.storagecafe.com/blog/2020-self-storage-sales-slightly-down-prices-rising/