For a few years now, investors, developers and analysts have been closely monitoring the supply of self storage facilities, new developments and planned projects. While there seems like no end in sight for new developments, especially in metro areas, there are some markets which are now bordering an oversupply. A recent report estimated that in the Dallas-Ft. Worth metro area alone, there were 49 planned developments for 2017, a significantly higher number than any other metro area in the country.*
StorTrack takes a closer look at whether the saturation of storage developments has had a significant impact on storage rates over the last year in the Dallas-Ft. Worth metro area. For investors and developers, storage rates can be a key indicator of the health of the market. Stagnant markets will see very little pricing volatility, seemingly with opportunity for growth, while more aggressive markets with higher volatility seemingly indicate higher competition for market share. StorTrack has analyzed the rates for four of the most common unit types as seen is the graph above.
Overall, the rates in the Dallas-Ft. Worth metro area have remained stagnant, despite the development in the area. When comparing the average monthly rate for September 2016 to September 2017, 5 x 5 and 10 x 10 climate controlled unit rates have remained relatively unchanged with a slight decrease of 3% in rates from $58 to $57 and $141 to $137, respectively. Meanwhile, rates for 5 x 5 and 10 x 10 non-climate controlled (standard) units have not seen any change, staying at $50 and $112, respectively. Perhaps we are yet to see any significant impact of the increased supply in Dallas. However, the opportunity exists for businesses to optimize their rates and add more to their bottom line.