Population growth, rising incomes push demand for Midwest storage
Occupancy in self-storage is improving as development ramps up in the Midwest, Marcus & Millichap reported. Consistent demand and moderate development have resulted in stable growth in 2017. In Chicago, an intense population density coupled with a booming apartment market sustained underlying storage demand, encouraging a drop in vacancy.
Buyer interest is high due to solid returns and steady operations, Marcus & Millichap said. Investors favor the Midwest because of the region’s consistency in slow steady growth. Buyer demand remains elevated, but investors are pushing back on pricing amid expectations of rising interest rates. Sellers’ expectations though have yet to adjust creating a gap between bid and ask spreads. [Keep Reading