{"id":1004487538,"date":"2020-11-05T18:02:24","date_gmt":"2020-11-06T02:02:24","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004487538"},"modified":"2025-02-26T06:19:18","modified_gmt":"2025-02-26T14:19:18","slug":"self-storage-enjoys-pricing-power-as-americans-continue-to-relocate","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/","title":{"rendered":"Self Storage Enjoys Pricing Power As Americans Continue to Relocate"},"content":{"rendered":"

Americans are on the move and the self storage industry is there to help while they figure it all out. It\u2019s no surprise this recession-resistant sector is doing well during the pandemic.<\/p>\n

READ THE DIGEST<\/a><\/p>\n

\u201cEven since the COVID-19 outbreak, we have seen self storage operations hold steady,\u201d said Brian Somoza, managing director at JLL Capital Markets. The challenges have been on-site staffing and pivoting to touchless interaction when customers walk in to utilize the storage facility.<\/p>\n

\"SmartStop<\/a>

SmartStop Self Storage has a portfolio of 14 branded operating properties, including this facility in Chula Vista, Calif. An additional 20 sites are in the pipeline in the Greater Toronto area. Image courtesy of SmartStop Self Storage<\/em><\/p><\/div>\n

COVID-19 has accelerated the self storage industry\u2019s use of technology, which was happening naturally but became a necessity during the pandemic, according to H. Michael Schwartz, founder & executive chairman of SmartStop Self Storage. \u201cWeb-led volume still appears strong, but we have seen a slight, subtle shift back to more traditional channels, including walk-ins,\u201d added Schwartz.<\/p>\n

Still, heading into 2021, the self storage industry will need to transact with storage customers on their own terms. Offering technologies that facilitate remote transactions is one way SmartStop, and some other operators, have set themselves apart from less tech-savvy competitors.<\/p>\n

\"JLL\u2019s<\/a>

JLL\u2019s Q2 2020 snapshot of all national self storage REITs shows that rates and collections were negatively impacted during Q2 due to COVID-19, but these metrics showed positive trends as of the end of July 2020. Chart courtesy of JLL<\/em><\/p><\/div>\n

There hasn\u2019t been much distress in the self-storage industry, but Somoza is seeing an increased desire by sellers to close before year-end.<\/p>\n

\u201cThere is an oversupply of self storage development that will take some time to lease-up,\u201d he said. \u201cEven before the pandemic, that was an issue. The fact that COVID-19 is slowing down the development pipeline is giving the market a chance to catch up on the leasing.\u201d More good news for investors in the sector.<\/p>\n

\u201cWe still haven\u2019t seen an offseason drop in occupancy like we normally would expect to see going into Q4,\u201d said Schwartz.<\/p>\n

In fact, occupancy in the SmartStop self storage portfolio grew from August to September, and remains in the low 90 percent range. Because of that, SmartStop still sees pricing power with new customers\u2014at least for the time being.<\/p>\n

\"JLL\u2019s<\/a>

JLL\u2019s Q2 2020 snapshot of all national self storage REITs shows a 2.7 percent reduction in revenue from Q2 2019 to Q2 2020. Chart courtesy of JLL<\/em><\/p><\/div>\n

In addition, given that this offseason is starting differently, there are still unknowns in terms of when occupancies come down and how much they come down. Operators that have the ability to analyze data quickly across several markets are going to be in a better position to respond when the market changes.<\/p>\n

Currently, the trends in self storage development continue to be geared towards custom-built, multistory self storage properties, instead of redevelopment of big box retail.<\/p>\n

\u201cNew supply is always in the back of our minds,\u201d added Schwartz. \u201cDuring this pandemic, SmartStop\u2019s lease-up assets have continued to push occupancy at a better-than-expected rate. During the same period, we haven\u2019t really seen incremental impact on our stabilized assets from new supply.\u201d<\/p>\n

\n

Sector Insights rotates among office\/medical office, industrial, retail, multifamily, self storage and hotel\/hospitality.<\/em><\/p>\n

Read the November 2020 issue of CPE.<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A slower development pipeline and touchless transactions are driving leasing success.<\/p>\n","protected":false},"author":894,"featured_media":1004487544,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1521,21742],"tags":[38954,32796,33425,39292],"class_list":["post-1004487538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital","category-latest","tag-brian-somoza","tag-jll","tag-michael-schwartz","tag-smartstop-self-storage"],"acf":[],"yoast_head":"\nSelf Storage Enjoys Pricing Power As Americans Continue to Relocate - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Self Storage Enjoys Pricing Power As Americans Continue to Relocate\" \/>\n<meta property=\"og:description\" content=\"A slower development pipeline and touchless transactions are driving leasing success.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-06T02:02:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-26T14:19:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/C_Self-StorageSmartStop-Chula-Vista-CA-1-copy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Mosher\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/\",\"name\":\"Self Storage Enjoys Pricing Power As Americans Continue to Relocate - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/C_Self-StorageSmartStop-Chula-Vista-CA-1-copy.jpg\",\"datePublished\":\"2020-11-06T02:02:24+00:00\",\"dateModified\":\"2025-02-26T14:19:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/1c9a21b40f0bcd757c66219797993b0f\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/self-storage-enjoys-pricing-power-as-americans-continue-to-relocate\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/C_Self-StorageSmartStop-Chula-Vista-CA-1-copy.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/10\/C_Self-StorageSmartStop-Chula-Vista-CA-1-copy.jpg\",\"width\":800,\"height\":620,\"caption\":\"SmartStop Self Storage has a portfolio of 14 branded operating properties including this facility in Chula Vista, CA. 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