March 24, 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. That specific city is Austin, and the data comes from Yardi Matrix.
As of February 2021, Austin is the 18th largest market in the US, with 19,269,724 net rentable square feet (NRSF) of self-storage (357 completed stores). The average facility size is 53,976 NRSF and new supply (prospective, planned and under construction NRSF) represents 6.9% of existing inventory.
Average street rates are $99.00 with net rentable square feet per capita of 9.9. This is slightly above the Texas average of 7 NRSF per capita. Population growth over the next 5 years is expected to be 10% which will help fill some of that new supply.
There are currently 4 self-storage properties under construction, 16 planned and 1 that is prospective. Over the previous 2 years 27 properties have been added to the city totaling 1,982,745 NRSF.
Climate controlled 10X10 street rates have outpaced the national average ending 2020 nearly 5% up compared to the U.S. average of 2.5%.
The top project under construction is a 147,370 NRSF Life Storage facility with a projected completion date of April of this year.
Austin is a great opportunity for commercial self-storage investment. The city provides great population growth, income, and relatively low saturation. If you are interested in discussing potential opportunities, please do not hesitate to reach out to us!
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