– (US Property firm comments on the Self Storage Industry )
Marcus & Millichap, a US commercial property-investment firm serving the US self-storage industry, has released its semi-annual national self-storage report for the second half of 2016.
The four-page report covers key factors driving self-storage use including job growth, industry capitalization (cap) rates, demographic trends, occupancy and property sales
“The self-storage market is well-positioned for the second half of the year as a reasonably resilient economy, healthy population growth and rising disposable income support improving property fundamentals,” company analysts wrote.
The report cautions that an influx of storage development in some secondary markets could signal problems in the future. “The primary headwind facing the self-storage sector remains the threat of over construction. After years of being undersupplied following the recession, development activity has taken off,” the report states. “Most of the building is localized to major metros that have the capacity to handle the influx; however, specific submarkets in these areas may face challenges moving forward.”