May 19, 2022
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 Austin, and the data comes from Yardi Matrix.
As of March 2022, Austin is the 18th largest self storage market in the US, with 20,733,300 net rentable square feet (NRSF) of self-storage (376 completed stores). The average facility size is 55,141 NRSF and new supply (prospective, planned and under construction NRSF) represents 10.5% of existing inventory.
Average street rates are $109.00 with net rentable square feet per capita of 10.3. This is slightly above the Texas average of 7 NRSF per capita. Population growth over the next 5 years is expected to be 8.9%.
There are currently 11 self-storage property under construction, 21 planned and 7 that are prospective! Over the previous 2 years the city has added 13 properties totaling 1,003,145 NRSF.
Additionally, climate controlled 10X10 street rates have out performed the national average. Rate growth for the month of March 2022 stands at about 8% increase since March of 2020 which is the same as the U.S. average of about 11%.
Austin is a rapidly growing city, however new self storage development is beginning to compress the rates owners are able to capture. 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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