Rental Rates • Section 8
South (West South Central) (Tables on page 80) Arkansas, Louisiana, Oklahoma, and Texas make up the South (West South Central) region. The top 10 MSAs within this region include Dallas-Fort Worth-Arlington, Texas; Hous- ton-The Woodlands-Sugar Land, Texas; San Antonio-New Braunfels, Texas; Austin-Round Rock-Georgetown, Texas; Oklahoma City, Okla.; New Orleans-Metairie, La.; Tulsa, Okla.; El Paso, Texas; Baton Rouge, La.; and McAllen-Edinburg-Mis- sion, Texas.
Unlike other areas, the South (West South Central) re-
gion’s rental rates were higher in June 2020 than they were in December 2016, which was the worst month for half of the unit sizes in Table 8.23. These lows came after seven of the 10 unit sizes posted topmost rates in July 2016. In 2020, rental rates for more than half of the unit sizes followed a pattern of increases in March 2020, decreases in April and May 2020, and increases in June 2020. Tables 8.24 and 8.25, which list rent per square foot by quarter, more clearly illustrate the typical seasonality of self-storage rental rates. For climate- controlled units, the highest rents were reported in the third quarter of 2016 as well as the second and third quarters of 2017; a high of $2.21 for 5-by-5s was listed twice, while a high of $1.53 for 5-by-10s was listed three times.
West (Mountain) (Tables on page 81) The West (Mountain) region consists of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming. The most populous CBSAs within the West (Mountain) re- gion are Phoenix-Mesa-Scottsdale, Ariz.; Denver, Colo.; Las Vegas-Henderson-Paradise, Nev.; Salt Lake City, Utah; Tuc- son, Ariz.; Albuquerque, N.M.; Colorado Springs, Colo.; Boise City, Idaho; Ogden-Clearfield, Utah; and Provo-Orem, Utah.
Table 8.26 presents rental rate data for the West
(Mountain) region. For both climate-controlled and non- climate-controlled units, the majority of the lowest rates occurred in either the fourth quarter of 2016 or the first quar- ter of 2017. In 2020, the normal seasonal pattern of higher rates in the second and third quarters and lower rates in the first and fourth quarter is once again missing. Instead, most unit sizes experienced modest rate increases in January 2020, which falls in the first quarter. February and March 2020 were nearly spilt with both slight upticks and gradual declines among the 10 unit sizes listed. Then, in April 2020, similar to data for most regions of the U.S., every unit size reported decreasing rental rates. Furthermore, all 10 unit sizes post- ed minimally escalating rates in May and June 2020. When looking at rent per square foot, as seen in Tables 8.27 and 8.28, only two unit sizes (non-climate-controlled 10-by-20s and climate-controlled 5-by-10s) listed their lowest rates in the second quarter of 2020; it is important to note that the difference between the top ($0.69) and bottom ($0.64) rates for 10-by-20 non-climate-controlled units by square foot is merely $0.05. For climate-controlled 5-by-10s, that difference
is $0.11, with a high of $1.50 in the third quarter of 2017 and a low of $1.39 in Q2 2020.
West (Pacific)(Tables on page 82) The states in the West (Pacific) region include Alaska, Cali- fornia, Hawaii, Oregon, and Washington. Top CBSAs in this section of the West include Los Angeles-Long Beach- Anaheim, Calif.; Riverside-San Bernardino-Ontario, Calif.; Seattle-Tacoma-Bellevue, Wash.;
San Francisco-Oakland-
Hayward, Calif.; Sacramento-Roseville-Arden-Arcade, Calif.; San Diego-Carlsbad, Calif.; Portland-Vancouver-Hillsboro, Ore.-Wash.; San Jose-Sunnyside-Santa Clara, Calif.; Oxnard- Thousand Oaks-Ventura, Calif.; Spokane-Spokane Valley, Wash.; Bakersfield, Calif.; Fresno, Calif.; and Honolulu, Hawaii.
In the Pacific West, nine of 10 unit sizes featured in Table
8.29 experienced topmost rates in July 2016. Those rates dwindled throughout the years, and half of the unit sizes re- corded their lowest rates in 2020. The most substantial drop in rental rates belongs to non-climate-controlled 10-by-20s, which plummeted from a high of $275.10 in July 2016 to a low of $217.61 in May 2020—a $57.49 decline. A closer look at the 2020 figures shows that all unit sizes, except climate- controlled 10-by-15s, reported rental rate increases in March 2020 and declines in April 2020. Rental rates for climate- controlled 10-by-15s did not improve in March 2020. Instead, that particular unit size saw decreases in March, April, and May 2020 before posting an uptick of more than $10 in June 2020; its lowest rate was $216.14 in May 2020. Though rental rates for all unit sizes were moving in an upward direction in June 2020, they were still no where near the highest rates of July 2016.
Migrating Rates Data presented in the tables and charts within this section clearly show that 2020 was unlike years past. Rental rates were disrupted and already softening from excess supply. Considering all the changes and challenges in 2020, it is dif- ficult to say what will happen with rental rates over the next several quarters.
The pandemic has altered the way self-storage facili-
ties conduct business. It forced many people to reconsider their spending habits as well as their futures. For some, the fear of catching COVID-19 was enough to ditch the crowd- ed cityscapes for more spacious suburban lifestyles. Others sought more affordable housing outside of city limits due to financial constraints such as job losses. All of these factors will have an impact on rental rates.
It’s also important to acknowledge that movement af-
fects self-storage demand. In turn, both demand and supply impact rental rates. Therefore, keep in mind that a good balance of supply and demand is vital to a market’s health.
2021 Self-Storage Almanac 73
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