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17 Oct 2023

NYC Development Recap


James McLean

Union Realtime

Supply and demand is one of the simplest yet prevalent economic rules. How much a unit in a self-storage facility can charge is based on the demand in the trade area for it, compared against how much supply is in the area. The basic theory is that when new supply hits a market, rates are suppressed for a while as the new facility opens with typically lower asking rates or aggressive promos to drive occupancy during its initial lease up period. This may drive down average rates in the area for a time.

The New York-Newark-Jersey City, NY-NJ-PA CBSA has the second most square footage of supply of any market in the United States. In 2022 it increased its total supply by over 5%, and has already added an additional 3.8% of additional supply in 2023 so far.

While constantly adding recently deliveries to this market there are still a great deal of projects in the development pipeline. If all current projects complete, New York-Newark-Jersey City, NY-NJ-PA CBSA can expect to see almost a 18.5% increase in total supply.

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