Self-Storage Space Is A Hot Commodity After Hurricane Harvey
Demand for self-storage space is on the rise after Hurricane Harvey ripped through Houston and left thousands displaced.
According to the Wall Street Journal, this is not uncommon after a natural disaster. Because people require space to store their items while they rebuild, storage operators often see more business following storms. Houston has more than 280,000 self-storage units at a total value of $8.4B, and before Harvey hit vacancy rates were sitting at 11.2%.
These were expected to increase an additional 1% by the end of the year but there is a good chance those numbers will change if developers withdraw from construction plans because of the hurricane, which could lead to shortages of construction workers and hikes in wage and material costs.
Life Storage Inc., which has locations in Houston and Beaumont, had a 92% occupancy rate prior to the storm. It is nearing maximum capacity.
Still, the benefits for landlords could be short-lived, the Journal reports. In most cases, people are requesting terms of six months or less until their homes are restored, and because landlords want to avoid being seen as price gougers, the actual rise in business may not last long.
