Sector on track for record transaction volume as vehicle registrations hit all-time high
SANTA BARBARA, Calif., Sept. 08, 2022 – Consumer purchases of recreational vehicles and boats are spurring strong demand for storage facilities, creating investment opportunities within this niche asset class, according to a new research bulletin from Yardi® Matrix.
The bulletin outlines factors driving demand for RV and boat storage. Most notable among them are a record number of acquisitions. In 2021, 571,000 RV registrations and 313,000 boat sales were recorded, driven largely by consumers’ desire for outdoor vacation activities during the pandemic and a shortage of space in residential areas to store the vehicles.
RV/boat storage facility deliveries are expected to rise to the highest levels in nearly two decades in 2022, the bulletin reports. However, this growth, constrained by the limited number of developers and suitable facilities, zoning issues and other factors, is not fully meeting demand.
Sixty-six property sales valued at $284.5 million took place in 2021. With the average price per acre already 40% higher in 2022 over last year, this year “will likely be another record year for RV/boat storage transaction volume,” the bulletin says.
Although vehicle sales could be slowed by rising interest rates, supply chain snags and a slowing economy, “growth in the total number of RVs and boats to be delivered over the next five to 10 years is likely to be solid and increase demand for storage,” the bulletin says.
Read the research bulletin to learn more about the RV/boat market’s current state and prospects and why this subsector of the self storage vertical presents an opportunity for investors.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, self storage, office and industrial property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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Invaluable information!
RV and boat storage demand has been on a rising trend for several years, while storage supply hasn’t kept pace with it.
As an investor, I’ve been looking for opportunities to enter this space for a long time. Having found no available RV storage facilities for sale in my market I decided to develop one instead. It’s been a long road, in large part because Cities and Counties don’t look favorably at RV and boat storage developments. Nevertheless, it looks like we’ll be able to open a new facility in Vancouver WA by early 2023. One of our goals is to utilize software and technology to the fullest extend possible to make this a highly automated facility.