Sep
19

Self-Storage in a Recession: Why This Slump Is Different

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The self-storage market has improved, but it’s clear the industry is experiencing a different dynamic in today’s environment. While the current economic climate has raised questions about resiliency in the property type, a more fundamental question is whether existing and potential tenants have changed their habits around self-storage.

In past recessionary periods of the early 1990s and 2001-2003, self-storage occupancies and revenue were generally not negatively impacted. For most facilities, revenue continued to increase year over year, and self-storage development turned out quite well for investors and developers.

The following table shows recent quarter-over-quarter changes in rental rates and occupancies based on a nationwide survey conducted by Integra Realty Resources. This reflects the nationwide market and illustrates current market conditions, which are unlike any historic trends.

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