Greater Atlanta self storage prices have been hit hard by recent overbuilding and rates declined even more last year, impacted by the coronavirus outbreak. Despite all this, Atlanta’s population and economy keeps growing, so the market is expected to rebound nicely. As such, self storage development projects have continued to push through.
The Atlanta metro area was, in fact, 2020’s sixth-most active self storage market, having added round 1.3 million square feet of fresh self storage inventory last year. That’s according to our most recent industry report. We’ve identified the top-performing markets in terms of development activity, drawing on Yardi Matrix research data on completed projects.
Here are other highlights on Atlanta’s self storage market:
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New self storage construction last year slowed dramatically from over 2 million square feet delivered in 2019. Seventeen storage facilities encompassing a total of 1.3 million square feet came online in Atlanta in 2020, accounting for 3.8 percent of existing inventory and 14 percent over the past three years.
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Not surprisingly, the supply spike has led to price pressures, causing rates for 10-by-10 units to fall 3.8% last year from $98 in 2019 to an average of $94. After several years of negative rent performance, the Greater Atlanta market experienced a rebound in street rates in December, a 1.6% average increase on a month-over-month basis.
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With a completed stock of about 37.5 million square feet, the market has around 6.2 net square feet of storage space available per capita, slightly below the national benchmark of 7.
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In 2021, 16 new facilities are expected to be added to Atlanta’s market, totaling about 1.1 million square feet of self storage space.
Though it will take a while for all the new self-storage supply to stabilize, population and consumer demand are also expected to grow, which should continue to strengthen the market.
Please find the full report here: https://www.storagecafe.