Self-Storage Demand
Expectations for self-storage performance in 2023 are more in line with the fourth quarter than the first nine months of 2022. The leasing season usually starts in April/May and ends in August/September, but last year, operators from nationwide started to see elevated move-outs in early September. Dips in occupancy are often expected that time of year, but over the previous few years, there was very little seasonality. As a result, the late 2022 dip came as a surprise to many operators and investors.
Move-in activity during the last quarter of 2022 was on pace with historical averages. It’s safe to say that the increase in self-storage demand that accompanied the COVID pandemic is over; though drivers such as displacement, home remodels, migration, divorce, home/office downsizing and retirement persist in fueling it. The industry will continue to show its resiliency and maintain high occupancies in 2023, though it’s now likely to return to more normalized seasonality in line with pre-pandemic performance.
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