By Vince Mancuso, Storage.com
Houston storage facilities in the “Inner Loop”—the Interstate 610 loop near Downtown Houston—saw considerable growth in occupancy between 2012 and 2013, according to our storage data. Facilities in the 77008 and 77009 zip codes in particular were nearly full, many seeing a 99.5 percent occupancy rate or more. So far, these trends have continued in 2014. Facilities in the Greater Heights neighborhood are approaching full capacity while locations in the 77019 zip code are already at 67 percent of 2013’s total capacity.
This high demand for Houston storage units may be due to a growth in population, as census data shows Houston gained about 35,000 new residents in the year ending July 1, 2013, beating all but New York City for total new residents. Houston’s total population currently stands somewhere around 2.2 million.
“Houston is one of the top cities in the country,” says Michael Johnson, real estate broker with Bellomy & Co., a full-service commercial real estate brokerage that focuses on the sale of self storage facilities in Texas and around the nation. “It has outpaced most other cities.”
Johnson says Bellomy & Co. has been watching the Houston market closely, noting the strength of its growth. “More people are moving; more people are in transition,” he adds. And with that transition comes a need for Houston self storage. “We’re seeing more facilities running at 85 to 90 percent occupancy.”
From Johnson’s perspective, a big reason for this transition is because of the huge economic and employment growth in Houston and surrounding areas. He cites the nearby Exxon Mobil development. “That’s one of the biggest developments in the nation. [It’s] going to directly impact 15,000 people to relocate.”
When people relocate for work, they’re not always able to immediately move into their new homes. In this situation, storage facilities can provide a valuable resource that’s hard to come by—temporary space. In fact, the contents of a multi-room house can be safely stored in a 10×30 unit, allowing people moving into Houston a place to store their belongings while waiting to get into their homes.
For those simply renting an apartment or condo, Houston mini storage provides an opportunity to keep their living space clutter-free without the need to downsize possessions. Looking back through 2012, the most popular Houston storage unit rentals fall between the 5×5 and 5×10 range. These sizes have dimensions similar to a large closet, making them perfect for storing belongings like sporting equipment, seasonal decorations, or even spare furniture without taking up valuable apartment space, which also seems to be in high demand.
According to an article by Houston Chronicle, rental properties in the Inner Loop are growing more popular—and not just for apartment living.
“A lot of corporations are growing in the city, moving into downtown,” says Katherine Scott, property manager for One Park Place apartments in Downtown Houston. She adds that the corporations popping up in the area are also drawing international attention, which means more people looking for affordable apartments. “It doesn’t matter if it’s Australia, Germany, or China—they’re coming here to work.”
When it’s not new employees, however, Scott says that it’s people looking to save time and money on their daily commute from the surrounding areas. Nevertheless, she estimates that One Park Place currently sits at 99 percent occupancy, which is very similar to some storage occupancy rates in the Inner Loop.
Although our data shows that Houston self storage rental rates in the Inner Loop remained relatively the same between 2012 and 2013—one facility even dropped by $21.40 for a 10×10 storage unit—this may not be the case for long.
“A lot of people move during summer months, so occupancy will be higher,” says Johnson. “We see [Houston storage facility] owners being able to raise prices easier because of the strong demand.”
For those looking to rent storage in the Inner Loop area, that might mean finding and reserving a storage unit sooner rather than later. Although, Johnson says that there are several Houston mini storage projects in the works throughout the area.
“If someone’s going to be moving into the area…there’s definitely a number of facilities to choose from,” Johnson adds.
In the meantime, self storage in Houston may be difficult to find in the Inner Loop. With some facilities already breaching full capacity and more new residents relocating for work and renting apartments, storage seekers in Houston will need to be quick in their decisions. However, more options may become available in the years to come with an increase in supply throughout Houston.
