Self-Storage Vacancy Falls Below National Average

LOS ANGELES—The vacancy rate for self-storage facilities in the Los Angeles area has fallen to 11%, according to a recent report from Marcus & Millichap. Vacancy rates have fallen 120 basis points since last year, more than double the drop from the previous year when vacancy rates fell 50 basis points. The low vacancy in the Los Angeles area is trending 160 basis points below the national average.

The report pointed to employment gains and population growth as the culprits of this downward pressure. Job growth is expected to grow this year with the addition of 81,000 new jobs in the Los Angeles area, a growth of 2%. The local population growth will also continue to grow at about .7%, which it has done since 2008. In total, the area has gained 320,000 new residents during that time. This rate, however, is expected to accelerate to .9% over the next five-year period, meaning we will add an additional 456,000 new residents to the Los Angeles area over the next five years.