Self Storage State of the Industry Report: First Half 2019
Your marketing strategy starts with a holistic understanding of the latest self storage investment opportunities and market trends. G5’s newest Self Storage State of the Industry Report reviews data and insights from the first half of 2019. This comprehensive overview focuses on market trends and what influences industry-specific supply and demand, construction starts, key markets to watch, and emerging technologies.
Key Takeaways: Market Trends
Self storage remains one of the strongest investment opportunities in commercial real estate. Stay competitive and take advantage of your investment with a national and local understanding of current market trends. We reviewed data from Yardi Matrix, Marcus and Millichap, and numerous industry sources to provide you with the following key takeaways for 2019:
- Currently, 9.6 percent of existing self storage inventory are units under construction or in planning phases. Much of this construction is in urban areas that are experiencing population growth, particularly in the 22 to 37 year old age range.
- Average rents decreased nationwide in 2018 due to increased delivery, concessions, and high occupancy goals. Demand has not kept up with supply increase over the last several years, and likely will be carried by the storage needs of three demographics: baby boomers, millennials, and Gen Z.
- To stay competitive without relying on concessions, self storage investors should consider incorporating in-demand design elements and amenities. These features include biometric security systems, niche storage options, interior access, and eco-friendly upgrades.
Comprehensive Industry Overview
The industry report summarizes the recent tariffs placed on construction materials, and how they are contributing to increased self storage construction costs. We outline how self storage owners and operators are subject to ADA building access regulations, data privacy laws, and storage lien protections for military personnel.
Next, we review Google’s real estate marketing insights, including self storage search and digital advertising trends from Q3 2018. These insights are followed by regional market trends to watch in 2019. This summary includes data from Marcus and Millichap and the Bureau of Labor Statistics to review vacancy, pricing, cap rates, and unemployment rates in five key regions.
What’s Next on the Digital Marketing Landscape
Use this current market data to adapt your marketing strategy and toolkit. If you haven’t updated your marketing platform recently, use 2019 to invest in your website and AI-powered digital advertising. Websites must be optimized for local search to be found and stay competitive. A well-performing digital advertising platform should provide high SERP ranking and personalized search experiences.
Stay Competitive by Knowing Industry Standards
G5’s 1H 2019 Self Storage State of the Industry Report includes data analysis, predictions, and insightful strategy that will help you make the most of your budget and time as you plan 2019 marketing tactics.