Coastal Cities Lead Self-Storage Recovery

CALABASAS, CA-Demand for self-storage space will be sustained by an improving job market and the daunting effects of Hurricane Sandy, GlobeSt.com has exclusively learned from Marcus & Millichap Real Estate Investment Services. The catastrophic events unfolding from the hurricane created an estimated $20 billion to $30 billion in damage along the Eastern Seaboard and according to the firm, typically after a natural disaster of this magnitude, “demand for self-storage accelerates as homeowners store undamaged goods during the cleanup process, while contractors and local suppliers utilize commercial space.” As such, the firm says that operators with heavy exposure to the East Coast will see a sharp increase in business over the next six to 18 months.

On a more positive note, according to Michael Hoffman, first vice president and national director of the firm’s national self-storage group, “with the economy on the mend, the nation has gained 1.3 million jobs this year, which enhanced consumer confidence to a four-year high and boosted retail sales.” He adds that “This trend will persist through the holiday season as an additional 400,000 jobs will be created in the final quarter.”