Nationally the rise in new supply has both depressed overall rental rates and increased concessions. Stagnant rents are finally dampening the enthusiasm of developers to build new properties. That should help cool down the competition for tenants, and eventually allow rents to grow again. But because the trade area of a self-storage property is so small, properties in different sub-markets of the same metro area may perform very differently from each other. There are submarkets where properties are getting 6 percent to 8 percent rent growth per year, and there are sub-markets with 2 percent to 3 percent declines. It all depends upon your individual market.
September 6, 2019