With 2021 Q4 closed out and earnings fully reported, many of the Public REITs predicted that 2022 will follow a pattern of more traditional years. With COVID-19 stabilizing in North America, some of the major Self Storage drivers from 2021 like displacement, and people relocating due to remote work are not as prevalent.
The average price per square foot in the month of February 2021 was $1.44*. In 2022 the average price per square foot in the month of February was $1.67*. Which is over a 15.8% increase from the previous year. While still a good sign for Self Storage, it does show that things have slowed down as the increase from the first week of January 2021 to the first week of January 2022 was over 21%.
With this in mind it will be interesting to see where the rest of 2022 takes the average price per square foot in the Self Storage industry. Will things stabilize into traditional annual trends or could it take off to even greater heights?
*(rounded to the second decimal)