September 6, 2021
For this blog I wanted to focus on a specific city in Texas and provide a brief update on the self-storage market within that city. For this blog, that specific city is Lubbock, and the data comes from Yardi Matrix.
As of July 2021, Lubbock is the 116th largest self storage market in the US, with 3,395,557 net rentable square feet (NRSF) of self-storage (47 completed stores). The average facility size is 72,245 NRSF and new supply (prospective, planned and under construction NRSF) represents 7.7% of existing inventory.
Average street rates are $87.00 with net rentable square feet per capita of 12.2. This is slightly above the Texas average of 7 NRSF per capita. Population growth over the next 5 years is expected to be 2.7%.
There are currently 0 self-storage property under construction, 3 planned and 1 that is prospective! Over the previous 2 years the city has added 2 property totaling 191,101 NRSF.
Additionally, climate controlled 10X10 street rates have under performed the national average. Rate growth for the month of July 2021 stands at about 5% increase since July of 2019 compared to the U.S. average of about 12%.
Lubbock is currently an over supplied market feeling the brunt of this oversupply on its suppressed rates. With tepid population growth over the next few years, the development of new storage supply will have to slow down in order to bring back balance to the demand/supply equation.
Please do not hesitate to reach out to us if you are interested in discussing potential opportunities!
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