With the GA/SC SSA Trade show only weeks away the Radius+ team decided to do a deep dive on the Atlanta-Sandy Springs-Roswell CBSA. A market that has seen tremendous supply growth in recent years.
First let’s understand why so many new Self Storage facilities have been built in Atlanta. Atlanta serves as an important commercial, economic and transportation hub in the Southeast and Sunbelt creating tons of job growth and with it population growth.
Fox5Atlanta reports that by 2050 the Atlanta-Metro’s population is expected to swell to nearly 8 million people. The article stated that “The metro Atlanta area had the third-largest total population increase between 2022 and 2023, with only Houston and the Dallas-Fort Worth metros adding more people.”
However the CBSA has been slammed with new supply growth consistently in the past few years suppressing asking rates since 2022:
- In 2019 – 6% new supply added relative to total supply
- In 2020 – 3.6% new supply added relative to total supply
- In 2021 – 3.1% new supply added relative to total supply
- In 2022 – 2.7% new supply added relative to total supply
- In 2023 – a whopping 4.9% new supply was added relative to total supply
- And in 2024 so far there has already been 3.6% new supply added relative to the total amount.
It doesn’t look like this trend will slow down anytime soon either as there is another 7.1% supply under construction relative to total supply in the pipeline.
With the constant supply growth and the REITs pricing strategy- it is likely that it will be a while before asking rates creep back up in the Atlanta CBSA.