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New Marcus & Millichap Releases Additional Report Regarding Coronavirus Impact on Self-Storage

Commercial real estate firm Marcus & Millichap (M&M) has released a second special report addressing the impact of the coronavirus pandemic on commercial real estate, this one focused exclusively on the self-storage industry. The two-page PDF examines operational adjustments made by facility operators, the effect of stay-at-home orders and changes in consumer demand. It also discusses how the U.S. industry will likely withstand the economic fallout of the crisis. Produced by the firm’s Self-Storage Division and distributed by its research arm, the report is available as a free download from the company website.

Self-storage is among the businesses best equipped to adapt to social distancing. It’s even likely to experience renewed demand as markets reopen under federal, state and local guidelines, according to the report. “Self-storage properties nationwide presented excellent fundamentals leading up to the current public-health crisis,” analysts said. “Coupled with a diverse userbase and relatively low overhead, storage facilities may be able to maintain cash flows.”

The publication includes a primer on how the CARES (Coronavirus Aid, Relief, and Economic Security) Act applies to self-storage businesses, particularly the Paycheck Protection Program (PPP). “Although the initial round of funding for the PPP was exhausted within two weeks, another capital injection into the program is anticipated. These potentially forgivable loans require operators to maintain payrolls at pre-pandemic levels for two months,” analysts wrote. “Amplified unemployment benefits may also keep renters in a position to pay their monthly rent until the economy reopens.”

M&M issued a preliminary report in mid-March, focused on the potential effect of COVID-19 on finance and real estate across several commercial real estate sectors, including self-storage.

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, Global Health Crisis, Special Report: Self-Storage

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