Rental Rates • Section 8


included the three months after the onset of the global CO- VID-19 crisis. Normally the second quarter of each year is marked by modest gains compared to its previous quarter, and then followed by even greater increases in the third quarter. That is not the case for 2020, as seasonal rebound is not reported in the second quarter for nine of the 10 unit siz- es reported in Tables 8.1 and 8.2, and gradual decreases were noted for each quarter since Q2 2019. Unlike those units, non-climate-controlled 5-by-5s posted its lowest rates in the fourth quarter of 2019 at $44.31, which is $0.50 less than the second quarter 2020 rate of $44.81. Conversely, across the board, all unit sizes and types in these two tables posted the highest rates in the second quarter of 2016. In other words, the majority of national rental rates have plunged from top rates to bottom rates in exactly four years’ time. The greatest decline was recorded by non-climate-controlled 10-by-20s, which dropped $56.71 in that four-year period. Climate- controlled 10-by-15s and 10-by-20s experienced significant losses over the past four years as well, with $55.56 and $55.14 declines, respectively.


From the first quarter to the second quarter of 2020,


only non-climate-controlled 5-by-5s reported the typical seasonal uptick, albeit a small one at only $0.18. All other unit sizes and types in Tables 8.1 and 8.2 faced declining rates over those two quarters. The most dramatic rental rate drop was posted by climate-controlled 10-by-15s, which fell $5.74 to $157.83. What’s more, it is interesting to note that although climate-controlled units boast higher rates than non-climate-controlled units, they also experienced greater


losses. For instance, rental rates for climate-controlled 5-by- 10s declined by $1.58 from the first to the second quarter of 2020—nearly triple the decrease posted by non-climate- controlled 5-by-10s in the same period. Additional quarterly comparisons by unit size and type can be seen in Charts 8.1, 8.2, 8.3, 8.4, and 8.5 below.


Though the pandemic had a direct impact on 2020’s rent-


al rate averages, it is apparent that increased competition from a surplus of new supply had an ill effect on rates before the coronavirus paralyzed the United States in mid-March.


The national rental rates per square foot for climate-


controlled and non-climate-controlled units show the low- est rental rates occurring during the second quarter of 2020, which would include the months of April, May, and June, when the pandemic was in full swing. As previously mentioned, it is not typical for rental rates to drop in the springtime.


2021 Self-Storage Almanac


69


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