As one of the major industry conferences wrapped up in Orlando, FL earlier this month, there was much buzz on the floor about the aggressive self storage development pace in the Sunshine State. Long considered a hotspot for retirement, meaning high demand for self storage along with lower unemployment rates and an increase in population and income growth, Florida is currently an increasingly growing market for new self storage developments. According to real estate firm Colliers International, in 2016 a dozen new facilities were opened in Palm Beach, Broward and Miami-Dade counties alone. The southern part of the state has seen this number skyrocket due to the dozens of new housing developments in many areas.
StorTrack takes a brief but close look at rate trends in the five fastest growing cities in Florida, which, not surprisingly, are located mostly on the southern part of the state. Rate trends over the last two years for 5x5 and 10x10 climate-controlled units in each city are analyzed. For investors and analysts, rate trends can indicate how aggressively the operators in a market are pricing their units and therefore decide whether the market is worth the investment.
In the last 12 months, Lehigh Acres has seen a downward trend for rates for both unit types in the last year, although their rates were trending upwards for 5x5 climate-controlled units over the past 24 months. In Fort Myers, the pricing data shows rates for both unit types continuing to trend upwards in the last 12 months. Cape Coral shows an overall positive trend over the last 24 months, but a negative trend when looking only at the last 12 months. This means for both unit types, rates on average have been decreasing in the city. On average, rates have been trending downward, at about 0.20% in Boyton Beach in the last year. Orlando is a bit peculiar in that their rates for 5x5 climate-controlled units are trending on average downward by about 0.04% while 10x10 climate-controlled rates have been trending upwards by almost 1% over the past 12 months. While this data merely shows a glimpse of storage pricing activity, developers and investors can dive into more detailed pricing data to draw better conclusions and make the best decision for their business.