In its 2020 self-storage investment forecast for Phoenix, Marcus & Millichap reported that vacancy declined in 2019 amid an 84 percent year-over-year increase in annual completions, as robust job and population growth helped drive up self-storage rental demand. Rents likewise remained unscathed by the robust construction activity in 2019.
Moving into 2020, Marcus & Millichap forecasts:
- Approximately 1.8 million square feet will be delivered in 2020, after a cycle-high 2.5 million square feet was deposited last year. An average of 1.8 million has opened per year since 2017.
- Metro vacancy will fall to 6.7 percent in 2020, down 160 basis points from the end of 2017.
- The metro’s average asking rent will rise to $1.04 per square foot following no change last year.
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