AUSTIN – Local self-storage construction is expected to increase by over 1.58 million sf this year, bolstered by second half 2019's strong construction pipeline.
According to Marcus & Millichap's second half 2019 forecast, vacancy will tighten 100 basis points to 7.7 percent at the end of the year. In 2018, local self-storage vacancy compressed 140 basis points.
Despite the metro’s strong absorption totals this year, the average lease rate will decrease 3 percent to $0.96 per sf. The average rent has been decreasing on an annual basis for more than two years as the inventory grew 12 percent, influencing operators to lower rates to stay competitive.
The report also forecasts 2.4 percent increases in both employment and population.
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Source: Marcus & Millichap
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