HOUSTON – Local self-storage construction is expected to slow this year to 1.66 million sf following two consecutive years with annual deliveries totaling more than three million sf.
According to Marcus & Millichap's second half 2019 forecast, demand hasn’t absorbed the new supply as the vacancy rate will climb 50 basis points this year to 9.9 percent.
Last year, the large deposit of space spiked the vacancy rate up 280 basis points.
The metro’s average self-storage rental rate will decline again this year, dropping 1.1 percent to $0.86 per sf.
The report also forecasts increases of 3.2 percent in employment and 1.6 percent in population.
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Source: Marcus & Millichap
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