April 22, 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 the West side of Houston, and the data comes from Yardi Matrix.
As of March 2021, West Houston is the largest self storage market in the US, with 41,156,749 net rentable square feet (NRSF) of self-storage (602 completed stores). The average facility size is 68,366 NRSF and new supply (prospective, planned and under construction NRSF) represents 2.2% of existing inventory.
Average street rates are $87.00 with net rentable square feet per capita of 9.7. This is slightly above the Texas average of 7 NRSF per capita. Population growth over the next 5 years is expected to be 5.3% which will help fill some of that new supply.
There are currently 4 self-storage properties under construction, 9 planned and 1 that are prospective. Over the previous 2 years the city has added 17 properties totaling 1,490,695 NRSF.
Additionally, climate controlled 10X10 street rates have out performed the national average. As a result, rates ended 2020 up about +5% compared to the U.S. average of about +2.6%.
Childress Self Storage is the top project currently under construction with 97,323 NRSF located on 1714 Patterson Street. The projected completion date of this project is October of 2021.
West Houston is a great opportunity for commercial self-storage investment. The city provides great population growth, income, and relatively low saturation. Please do not hesitate to reach out to us if you are interested in discussing potential opportunities!
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