Economic conditions continue to impact the Self-storage sector in Q1 of 2020.
Overall results showed activity continuing into the first quarter of 2020 in the self-storage sector, nationally there was a decline going into April. New construction of these REIT facilities around the country declined throughout Q1.
Key highlights from Self Storage REITs Q1 2020 report findings:
- Strategic acquisitions continued throughout Q1, but have slowed significantly going into April.
- New construction declined throughout Q1 and has essentially stopped due a lack of available financing and generally difficult economic conditions.
- The industry is better positioned operationally today than at the time of the great financial crisis given the advances in internet marketing and sophisticated revenue management platforms that provide large operators advantages in capturing and holding market share.
- Online rental programs have been expedited/expanded in order to facilitate contactless rentals.
- Rental rate increases have generally been suspended in April and May.