Competition in the self-storage sector continues to impact rate growth in many markets in Q4 of 2019.
Overall results showed that while there was not a lot of growth in the self-storage sector, nationally there was either a slight increase in revenue or it remained flat, based on same-store data. New construction of these REIT facilities around the country have most likely peaked, and we believe that it will decline in 2020.
Key highlights from Self Storage REITs Q4 2019 report findings:
- Strategic acquisitions remain prevalent among national self-storage REITs
- Third-party management platforms continue to grow among REITs
- Our research shows that new construction of self-storage facilities have peaked, and that it will decline in 2020
- Although there’s been price decreases for customers, the average length of occupancy usually exceeds 12 months, allowing for revenue gains through periodic rent increases
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