Marcus & Millichap reports: People keep stowing their stuff in self-storage facilities

self storageby Dan Rafter

People have a lot of stuff. They often have more stuff than space in which to stow it.

Don’t believe us? Check out the recent series of semiannual self-storage reports released by Marcus & Millichap. The first-half 2014 reports show that in cities across the United States, self-storage facilities are on the rise.

Consider St. Louis. Marcus & Millichap reports that steady employment growth and population gains mean that the demand for self-storage units in the St. Louis market will jump this year. Because of this, the company predicts that self-storage vacancies will decline 50 basis points this year to 13.3 percent.

Operators here will also be able to lift asking rents at climate-controlled and non-climate-controlled facilities 2.9 percent and 2.3 percent respectively. This means that the average asking rent for a climate-controlled St. Louis self-storage facility will jump to $126 a unit, while this figure will increase to $85 a unit for non-climate-controlled facilities.

And St. Louis is just one market in which rents will rise and vacancies will fall when it comes to self-storage units.

Marcus & Millichap predicts that self-storage unit vacancies will drop 70 basis points to 12.3 percent by the end of 2014 in the Minneapolis market. Asking rents for climate-controlled units here climbed 1.9 percent to $141 a unit on climate-controlled facilities in 2013 and 4.1 percent to $115 a unit on facilities that lack climate control.

Marcus & Millichap predicts another 70-basis-point drop in vacancies for Detroit-area self-storage facilities. Vacancy rates in this sector should fall to 14.5 percent by the end of 2014. Rents for climate-controlled facilities in the Detroit market should rise 3.2 percent to $130 a unit, while those at non-climate-controlled facilities should rise 0.7 percent to $93 a unit.

The news was good in the Chicago market, too, with vacancies at self-storage units expected to fall 130 basis points to 11.2 percent by the end of 2014. In 2013, rental rates for climate-controlled space jumped 2.4 percent to $150 a unit and 4.9 percent to $112 a unit for non-climate-controlled spaces.

In Columbus, self-storage vacancies should drop to 12.3 percent by the end of the year. Rents on climate-controlled facilities in 2013 slipped 0.9 percent to $109 a unit, though they jumped 2.5 percent to $83 a unit for non-climate-controlled facilities.

Advertisements
This entry was posted in Chicago Commercial Real Estate, Columbus real estate, Detroit commercial real estate, Illinois, Illinois real estate, Michigan commercial real estate, Minneapolis commercial real estate, Minnesota real estate, Missouri commercial real estate, St. Louis real estate and tagged , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s