Feb
27

Tight Supply Spurs Demand in Self-Storage

By

The self-storage sector is poised for further growth, with a combination of household formation, job growth and increased population mobility lifting demand, Marcus & Millichap Real Estate Investment Services says in a new report. At the same time, new supply to meet the demand has yet to materialize, giving owners a free hand with rental rates.

Demand drivers vary from region to region, but it’s safe to say that the drivers are in place pretty much everywhere. “On the East Coast, migration is stimulated by above-average employment markets, including New York City and Charlotte,” says MMI’s report, prepared by James Reeves, the firm’s production director, research services. “These traditional financial centers are diversifying with technology and housing-related segments adding thousands of positions, attracting job seekers from areas where job growth is slower.”

In Texas and other energy states, job formation is being spurred by oil and gas exploration, and workers are lured to these markets by high wages. “Many of the newly employed are housed in barracks or small apartments, creating demand for self-storage units for additional space,” according to MMI’s report.

READ MORE HERE

Be Sociable, Share!
    Categories : National News

    Comments are closed.