This month we look into the regular (walk-in) rates for 5×10 climate-controlled units around the country. Specifically, we look at zip codes across the U.S. where the rate increase for 5×10 climate controlled units, year-over-year was over 20%, comparing September 2017 with September 2018. For this analysis, we filter for zip codes where the number of facilities was 5 or more. This is what we found:
Top 20 Zip Codes
The zip code with the largest year-on-year change is located in Hinesville, Georgia. Not surprisingly, further analysis of pricing activity in this area shows pricing volatility over 19 percent for 4 out of the 11 stores in this zip code. Pricing volatility is a measurement pricing activity (rate increase, decrease, addition or removal) within a time range. Higher pricing volatility is typically an indication of operators responding to higher market demand by adjusting their rates more frequently.
In this analysis, 6 out of the top 20 zip codes are located in the state of Florida. Many cities in Florida have undergone rapid growth (both economically and in population). Florida is also one of the states with the highest number of new self-storage developments in the last couple of years. Not surprisingly, the year-on-year rate changes for this unit type reflect the response of owners and operators to an increasingly competitive market in Florida.
For investors and operators alike, being able to find the ideal location (ie. city or zip code) for development or investment, is much simpler with StorTrack’s SiteFinder (included in a subscription to Online PLUS). SiteFinder’s mapping tool, enables users to run searches for their ideal location based on their region, rate trends, average rates, demographics, etc. criteria. Learn more at https://www.stortrack.com/products/online-plus.html