July 14, 2021
For this market update 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 May 2021, Austin is the 18th largest self storage market in the US, with 19,377,076 net rentable square feet (NRSF) of self-storage (357 completed stores). The average facility size is 54,277 NRSF and new supply (prospective, planned and under construction NRSF) represents 6.1% of existing inventory.
Average street rates are $105.00 with net rentable square feet per capita of 10.0. This is far above the Texas average of 7 NRSF per capita. Population growth over the next 5 years is expected to be an astounding 9.4%.
There is currently 1 self-storage properties under construction, 18 planned and 3 that are prospective! Over the previous 2 years the city has added 25 properties totaling 1,874,122 NRSF.
Additionally, climate controlled 10X10 street rates have performed better than national average. Rate growth for the month of May 2021 stands at about 17% increase since May of 2020 compared to the U.S. average of about 12%.
Austin is a fast growing city and amazing opportunity for commercial self-storage investment. The city provides great population growth and income. Please do not hesitate to reach out to us if you are interested in discussing potential opportunities!
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