Commercial real estate firm Marcus & Millichap has released a “2020 Self Storage Investment Forecast” focused on industry activity in the U.S. The 52-page PDF report offers analytical insight on a national, regional and local level. Produced by the firm’s National Self-Storage Group and released through its research-services division, it’s available for free download from the company website.
The publication addresses:
- Economic drivers for 2020
- Supply, development and rental trends in numerous markets
- Capital-markets trends
- Demographic impact on rent growth
- Investment trends
- Supply trends
“Rampant new construction over the course of this expansion cycle has raised caution among self-storage operators, but after peaking in 2018, new additions have begun to recede,” the report states. “Supply additions in 2020 are forecast to taper from last year’s level to 85 percent of what was delivered in 2018. Though still elevated by historical standards, development will likely be further curtailed as lenders tighten construction capital, costs rise and lease-up periods extend. That said, most of the markets currently facing oversupply risk will eventually absorb the overhang as economic growth fuels household formation and other demand drivers.”
Marcus & Millichap produces more than 2,000 research products each year, according to company officials. Its research-services department offers a range of publications, from national economic perspectives to market-specific analyses. Its website enables users to search for reports by property type, location or keyword.
Founded in 1971, the company is a commercial property-investment firm with more than 2,000 investment professionals in offices throughout Canada and the United States. It closed nearly 9,500 transactions in 2018 with a value of approximately $46.4 billion.
Marcus & Millichap, 2020 Self-Storage US Investment Forecast