February 8, 2021
The economic effect of Covid-19 restrictions over the last several months has impacted all asset types including the more buoyant self storage industry. Below is the market recap for the Houston/Great Houston area for the previous 12 months.
As of May 2020, Houston’s new supply pipeline (new construction and planned) accounted for 2.9% of existing inventory which is slightly up from April’s 2.7% but down from the 4.7% seen May of 2019. Despite the month over month increase in development activity, it is likely that activity will slow due to interruptions from Covid-19.
Using I-45 as the divider, on the East side of the Houston/Greater Houston Market which extends from Galveston all the way up to Willis there are currently 13 facilities that are prospective, planned or under construction totaling 1,014,913 SF (602,609 SF Planned, 48,000 SF Prospective, 364,304 SF Under Construction).
On the West side of the Houston/Greater Houston Market there are currently 26 facilities that are prospective, planned or under construction totaling 1,739,304 SF (559,785 SF Planned, 639,824 SF Prospective, 539,695 SF Under Construction).
For the Houston metro area, the average monthly rate for a 10X10 non-climate unit is $81.00. From May, Year over Year monthly rates for 10×10 non-climate units are down – 6% while 10X10 climate units are down -8% YoY. Larger 10×20 non-climate units have seen the smallest YoY rate decline at -3%.
In May of 2019, the YoY rate changes were as follows: 1) 10×10 non-climate unit -4%, 2) 10×10 climate units -9% and 3) 10X20 non-climate units -3%.
Below is the latest sales information for reported properties sold within the previous 12 months in the Houston/Greater Houston area.
*We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. We include projections, opinions, assumptions or estimates for example only.
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