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2024 Montana Self-Storage Trends: Softening Rent Growth

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Claire Matten | CCIM/SIOR
Contact Claire Matten | CCIM/SIOR

2024 Montana Self-Storage Trends: Softening Rent Growth

The Montana self-storage market, like many others across the nation, has experienced a notable shift in rent growth trends. During the COVID-19 migration period between 2020 and 2022, rent growth surged, with percentage increases reaching double digits. However, as we move forward, it is crucial to adjust our projections and underwriting to align with current market conditions. Here are some essential insights and considerations for 2024 investment and operating strategies.

Softening of Rent Growth

One significant trend we’re observing, both nationwide and in Montana, is softening rent growth. During the peak of the COVID-19 pandemic, Montana saw substantial rent increases, mirroring the national trend. However, the current market presents a different scenario, with a noticeable slowdown in rent growth. In Missoula County, for example, we observed only a $0.01/SF increase in average rent growth year over year versus a larger jump of $0.03/SF in 2021-2022.

When underwriting projections for acquiring, developing, or expanding self-storage facilities, it is now imperative to adopt a more conservative approach. The previous years’ rent growth trajectories are no longer realistic. Today, we recommend using more modest growth estimates, typically between 1 to 2 percent.

Strategic Underwriting and Projections

If you are considering acquiring an existing facility, developing a new one, or expanding your current operations, it is essential to recalibrate your rent growth projections. Conservative estimates will provide a more accurate and sustainable basis for your financial models and investment decisions.

Reaching out to experts who can provide tailored market data and insights is a crucial step in this process. At SterlingCRE Advisors, we can assist you in understanding the current trends and movements in the market. Our team can help you validate your rent growth projections and offer precise market data for specific submarkets, ensuring you have the most accurate information to make informed investment decisions.

Expert Guidance for Investors

Whether you are looking to sell your facility, buy a new one, or expand your portfolio into Montana, seeking expert advice is vital. By partnering with professionals who have a deep understanding of the local market dynamics, you can make more informed and strategic decisions. SterlingCRE Advisors is here to help you navigate these changes, providing the data and insights necessary for successful underwriting and investment strategies.

In conclusion, the Montana self-storage market is experiencing a shift in rent growth trends, necessitating a more conservative approach to projections and underwriting. By leveraging expert guidance and tailored market data, you can ensure that your investment decisions are based on the most accurate and current information available. We are committed to helping you achieve your investment goals in this evolving market.

Matt Mellott
Matt Mellott, CCIM/SIOR
Contact Matt

2024 Montana Self-Storage Trends: Softening Rent Growth

The Montana self-storage market, like many others across the nation, has experienced a notable shift in rent growth trends. During the COVID-19 migration period between 2020 and 2022, rent growth surged, with percentage increases reaching double digits. However, as we move forward, it is crucial to adjust our projections and underwriting to align with current market conditions. Here are some essential insights and considerations for 2024 investment and operating strategies.

Softening of Rent Growth

One significant trend we’re observing, both nationwide and in Montana, is softening rent growth. During the peak of the COVID-19 pandemic, Montana saw substantial rent increases, mirroring the national trend. However, the current market presents a different scenario, with a noticeable slowdown in rent growth. In Missoula County, for example, we observed only a $0.01/SF increase in average rent growth year over year versus a larger jump of $0.03/SF in 2021-2022.

When underwriting projections for acquiring, developing, or expanding self-storage facilities, it is now imperative to adopt a more conservative approach. The previous years’ rent growth trajectories are no longer realistic. Today, we recommend using more modest growth estimates, typically between 1 to 2 percent.

Strategic Underwriting and Projections

If you are considering acquiring an existing facility, developing a new one, or expanding your current operations, it is essential to recalibrate your rent growth projections. Conservative estimates will provide a more accurate and sustainable basis for your financial models and investment decisions.

Reaching out to experts who can provide tailored market data and insights is a crucial step in this process. At SterlingCRE Advisors, we can assist you in understanding the current trends and movements in the market. Our team can help you validate your rent growth projections and offer precise market data for specific submarkets, ensuring you have the most accurate information to make informed investment decisions.

Expert Guidance for Investors

Whether you are looking to sell your facility, buy a new one, or expand your portfolio into Montana, seeking expert advice is vital. By partnering with professionals who have a deep understanding of the local market dynamics, you can make more informed and strategic decisions. SterlingCRE Advisors is here to help you navigate these changes, providing the data and insights necessary for successful underwriting and investment strategies.

In conclusion, the Montana self-storage market is experiencing a shift in rent growth trends, necessitating a more conservative approach to projections and underwriting. By leveraging expert guidance and tailored market data, you can ensure that your investment decisions are based on the most accurate and current information available. We are committed to helping you achieve your investment goals in this evolving market.