Semantics Relevance

Americans Went All-In on Self-Storage. That Demand Is Suddenly Cooling.

Logical Analysis Report (click to view);
Knowledge Map (click to view)
*Knowledge Map Navigation: Spatial co-ordinations are initially random, and will automatically re-arrange to minimize complexity based on distance between relationships. Mouse down and drag to pan. Right click on the strategic diagram toggles between motion and stationary. Hover over abstract node (orange) to view abstractions. Hover over leaf node to view corresponding narrative. Left click on the leaf node expands the narrative to view full text.

Knowledge Diagram Navigation:

Spatial co-ordinations are initially random, and will automatically re-arrange to minimize complexity based on distance between relationships. Mouse down and drag to pan. Right click on the strategic diagram toggles between motion and stationary. Hover over abstract node (orange) to view abstractions. Hover over leaf node to view corresponding narrative. Left click on the leaf node expands the narrative to view full text.

Narrative Analysis - Report

Key Focus

  • In Sun Belt markets, where much of the self-storage spaces have been built over the past couple of years, falling rental rates combined with climbing construction and financing costs have prompted some developers to walk away from projects entirely ...

    • No momentum supporting factor found

    Challenge supporting factors

  • (construction,developers,pgim_real_estate)
  • (construction,developers,menifee)

    • Work-in-progress supporting factors

  • (construction,costs,sun_belt)
  • (construction,developers,costs,sun_belt)
  • (construction,developers,sun_belt)
  • (construction,sun_belt)
  • (self-storage,construction,costs,sun_belt)
  • (self-storage,construction,developers,sun_belt)
  • (self-storage,construction,sun_belt)
  • (self-storage,developers,sun_belt)
  • (construction,costs,markets)
  • (construction,developers,costs,markets)
  • (construction,developers,markets)
  • (self-storage,construction,costs,markets)
  • (self-storage,construction,developers,markets)
  • (self-storage,developers,markets)
  • (self-storage,construction,developers,interest)

    • Time PeriodChallengeMomentumWIP
    Report3.82 0.00 96.18

    High Level Abstraction (HLA) combined

    High Level Abstraction (HLA)Report
    (1) (construction,costs,sun_belt)100.00
    (2) (construction,developers,costs,sun_belt)98.76
    (3) (construction,developers,sun_belt)95.04
    (4) (construction,sun_belt)94.86
    (5) (self-storage,construction,costs,sun_belt)91.67
    (6) (self-storage,construction,developers,sun_belt)90.07
    (7) (self-storage,construction,sun_belt)89.36
    (8) (self-storage,developers,sun_belt)88.83
    (9) (construction,costs,markets)87.06
    (10) (construction,developers,costs,markets)85.11
    (11) (construction,developers,markets)81.38
    (12) (self-storage,construction,costs,markets)78.19
    (13) (self-storage,construction,developers,markets)76.06
    (14) (self-storage,developers,markets)74.82
    (15) (self-storage,construction,developers,interest)74.47
    (16) (self-storage,construction,developers,finance)72.87
    (17) (self-storage,developers,finance)71.10
    (18) (self-storage,construction,developers,costs)70.04
    (19) (construction,costs,prudential_financial)64.72
    (20) (construction,developers,costs,prudential_financial)63.30
    (21) (construction,developers,prudential_financial)59.57
    (22) (self-storage,construction,costs,prudential_financial)56.21
    (23) (self-storage,investment,prudential_financial)55.67
    (24) (construction,costs,pgim_real_estate)53.19
    (25) (construction,developers,costs,pgim_real_estate)51.60
    (26) (self-storage,construction,costs,pgim_real_estate)46.28
    (27) (self-storage,investment,pgim_real_estate)45.39
    (28) (construction,costs,menifee)43.26
    (29) (construction,developers,costs,menifee)41.49
    (30) (self-storage,construction,costs,menifee)36.35
    (31) (self-storage,investment,menifee)35.11
    (32) (construction,costs,investment)33.69
    (33) (construction,developers,costs,investment)31.56
    (34) (self-storage,construction,costs,investment)26.77
    (35) (construction,yardi_matrix)24.82
    (36) (self-storage,construction,yardi_matrix)24.11
    (37) (construction,united_states)23.94
    (38) (self-storage,construction,united_states)23.40
    (39) (construction,sparefoot)23.05
    (40) (self-storage,construction,sparefoot)22.87
    (41) (construction,rent)22.16
    (42) (self-storage,construction,rent)21.63
    (43) (pandemic,developers,market)21.45
    (44) (pandemic,market)20.57
    (45) (self-storage,developers,market)19.86
    (46) (self-storage,developers,pandemic,market)18.79
    (47) (self-storage,pandemic,market)17.91
    (48) (self-storage,developers,interest)17.73
    (49) (self-storage,yardi_matrix,yardi)17.55
    (50) (self-storage,market,tyson_huebner)17.20
    (51) (self-storage,yardi,tyson_huebner)16.31
    (52) (self-storage,yardi_matrix,tyson_huebner)15.78
    (53) (self-storage,market,software)15.60
    (54) (self-storage,yardi,software)14.54
    (55) (self-storage,yardi_matrix,software)14.01
    (56) (self-storage,market,property-management)13.83
    (57) (self-storage,yardi,property-management)13.30
    (58) (self-storage,yardi_matrix,property-management)12.59
    (59) (self-storage,yardi,market)12.06
    (60) (self-storage,yardi_matrix,market)10.99
    (61) (self-storage,market,director)10.82
    (62) (self-storage,yardi_matrix,director)9.93
    (63) (self-storage,yardi,revenue)9.75
    (64) (self-storage,yardi,forecast)9.40
    (65) (self-storage,self_storage_association,trade)8.87
    (66) (self-storage,self_storage_association,timothy_dietz)8.69
    (67) (self-storage,self_storage_association,president)8.33
    (68) (self-storage,self_storage_association,households)7.80
    (69) (self-storage,self_storage_association,executive)7.27
    (70) (self-storage,self_storage_association,country)6.74
    (71) (self-storage,investment,construction)6.21
    (72) (self-storage,investment,renting)6.03
    (73) (self-storage,investment,move-in)5.85
    (74) (self-storage,investment,manufactured)5.67
    (75) (construction,developers,pgim_real_estate)4.61
    (76) (construction,developers,menifee)3.19
    (77) (pandemic,industry,so-called)2.13
    (78) (pandemic,industry,paying)1.77
    (79) (pandemic,paying)1.24
    (80) (pandemic,industry,coronavirus)1.06
    (81) (pandemic,space)0.53
    (82) (pandemic,so-called)0.35
    (83) (pandemic,dwellers)0.18

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    Supporting narratives:

    Please refer to knowledge diagram for a complete set of supporting narratives.

    • challenge - Back to HLA
      • Higher interest rates also make it harder for developers of storage facilities to finance construction.. . Lee Menifee, who leads investment research for the Americas at PGIM Real Estate, a division of Prudential Financial, said that "most of the decrease in construction activity is attributed to higher construction costs and less availability of construction debt." ...
      • High Level Abstractions:
        • (construction,developers,menifee)
        • (construction,developers,pgim_real_estate)
        • Inferred entity relationships (9)
        • (construction,developers,self-storage,sun_belt) [inferred]
        • (construction,developers,sun_belt) [inferred]
        • (construction,developers,finance,self-storage) [inferred]
        • (construction,developers,interest,self-storage) [inferred]
        • (construction,developers,markets) [inferred]
        • (construction,developers,markets,self-storage) [inferred]
        • (construction,developers,pgim_real_estate) [inferred]
        • (construction,developers,prudential_financial) [inferred]
        • (construction,developers,menifee) [inferred]

    • WIP - Back to HLA
      • In Sun Belt markets, where much of the self-storage spaces have been built over the past couple of years, falling rental rates combined with climbing construction and financing costs have prompted some developers to walk away from projects entirely ...
      • High Level Abstractions:
        • (self-storage,construction,developers,sun_belt)
        • (construction,developers,sun_belt)
        • (self-storage,developers,markets)
        • (self-storage,construction,sun_belt)
        • (construction,developers,costs,markets)
        • (construction,sun_belt)
        • (construction,costs,sun_belt)
        • (self-storage,developers,sun_belt)
        • (construction,costs,markets)
        • (self-storage,construction,costs,markets)
        • (self-storage,construction,developers,markets)
        • (construction,developers,costs,sun_belt)
        • (self-storage,construction,costs,sun_belt)
        • (construction,developers,markets)
        • Inferred entity relationships (33)
        • (construction,costs,developers,self-storage) [inferred]
        • (construction,developers,markets) [inferred]
        • (construction,costs,developers,pgim_real_estate) [inferred]
        • (developers,self-storage,sun_belt) [inferred]
        • (construction,costs,self-storage,sun_belt) [inferred]
        • (construction,costs,prudential_financial,self-storage) [inferred]
        • (construction,developers,sun_belt) [inferred]
        • (construction,developers,interest,self-storage) [inferred]
        • (construction,costs,menifee) [inferred]
        • (construction,self-storage,united_states) [inferred]
        • (construction,developers,prudential_financial) [inferred]
        • (developers,markets,self-storage) [inferred]
        • (construction,costs,developers,sun_belt) [inferred]
        • (construction,costs,sun_belt) [inferred]
        • (construction,costs,menifee,self-storage) [inferred]
        • (construction,costs,developers,investment) [inferred]
        • (construction,costs,investment) [inferred]
        • (construction,developers,finance,self-storage) [inferred]
        • (construction,self-storage,sparefoot) [inferred]
        • (construction,developers,markets,self-storage) [inferred]
        • (construction,costs,investment,self-storage) [inferred]
        • (construction,costs,markets) [inferred]
        • (construction,costs,developers,prudential_financial) [inferred]
        • (construction,costs,pgim_real_estate,self-storage) [inferred]
        • (construction,developers,self-storage,sun_belt) [inferred]
        • (construction,self-storage,yardi_matrix) [inferred]
        • (construction,costs,developers,markets) [inferred]
        • (construction,costs,prudential_financial) [inferred]
        • (construction,developers,pgim_real_estate) [inferred]
        • (construction,costs,developers,menifee) [inferred]
        • (construction,costs,markets,self-storage) [inferred]
        • (construction,costs,pgim_real_estate) [inferred]
        • (construction,developers,menifee) [inferred]

    • WIP - Back to HLA
      • Higher interest rates also make it harder for developers of storage facilities to finance construction ...
      • High Level Abstractions:
        • (self-storage,construction,developers,interest)
        • Inferred entity relationships (9)
        • (construction,developers,self-storage,sun_belt) [inferred]
        • (construction,developers,sun_belt) [inferred]
        • (construction,developers,finance,self-storage) [inferred]
        • (developers,interest,self-storage) [inferred]
        • (construction,developers,markets) [inferred]
        • (construction,developers,markets,self-storage) [inferred]
        • (construction,developers,pgim_real_estate) [inferred]
        • (construction,developers,prudential_financial) [inferred]
        • (construction,developers,menifee) [inferred]

    • WIP - Back to HLA
      • Higher interest rates also make it harder for developers of storage facilities to finance construction. ...
      • High Level Abstractions:
        • (self-storage,developers,finance)
        • (self-storage,construction,developers,finance)
        • Inferred entity relationships (9)
        • (construction,developers,self-storage,sun_belt) [inferred]
        • (construction,developers,sun_belt) [inferred]
        • (construction,developers,interest,self-storage) [inferred]
        • (developers,finance,self-storage) [inferred]
        • (construction,developers,markets) [inferred]
        • (construction,developers,markets,self-storage) [inferred]
        • (construction,developers,pgim_real_estate) [inferred]
        • (construction,developers,prudential_financial) [inferred]
        • (construction,developers,menifee) [inferred]

    • WIP - Back to HLA
      • In Sun Belt markets, where much of the self-storage spaces have been built over the past couple of years, falling rental rates combined with climbing construction and financing costs have prompted some developers to walk away from projects entirely. ...
      • High Level Abstractions:
        • (self-storage,construction,developers,costs)
        • Inferred entity relationships (19)
        • (construction,costs,developers,investment) [inferred]
        • (construction,costs,investment) [inferred]
        • (construction,costs,investment,self-storage) [inferred]
        • (construction,costs,markets) [inferred]
        • (construction,costs,developers,prudential_financial) [inferred]
        • (construction,costs,pgim_real_estate,self-storage) [inferred]
        • (construction,costs,developers,pgim_real_estate) [inferred]
        • (developers,self-storage,sun_belt) [inferred]
        • (construction,costs,self-storage,sun_belt) [inferred]
        • (construction,costs,prudential_financial,self-storage) [inferred]
        • (construction,costs,developers,markets) [inferred]
        • (construction,costs,menifee) [inferred]
        • (construction,costs,prudential_financial) [inferred]
        • (construction,costs,developers,menifee) [inferred]
        • (construction,costs,markets,self-storage) [inferred]
        • (construction,costs,pgim_real_estate) [inferred]
        • (construction,costs,developers,sun_belt) [inferred]
        • (construction,costs,sun_belt) [inferred]
        • (construction,costs,menifee,self-storage) [inferred]

    • WIP - Back to HLA
      • Lee Menifee, who leads investment research for the Americas at PGIM Real Estate, a division of Prudential Financial, said that "most of the decrease in construction activity is attributed to higher construction costs and less availability of construction debt." ...
      • High Level Abstractions:
        • (self-storage,investment,pgim_real_estate)
        • (construction,developers,prudential_financial)
        • (construction,developers,costs,pgim_real_estate)
        • (construction,developers,costs,prudential_financial)
        • (construction,costs,prudential_financial)
        • (self-storage,investment,prudential_financial)
        • (self-storage,construction,costs,menifee)
        • (self-storage,investment,construction)
        • (self-storage,construction,costs,pgim_real_estate)
        • (self-storage,construction,costs,investment)
        • (construction,costs,investment)
        • (self-storage,investment,menifee)
        • (construction,costs,menifee)
        • (construction,costs,pgim_real_estate)
        • (construction,developers,costs,investment)
        • (self-storage,construction,costs,prudential_financial)
        • (construction,developers,costs,menifee)
        • Inferred entity relationships (27)
        • (construction,costs,developers,self-storage) [inferred]
        • (construction,developers,markets) [inferred]
        • (construction,costs,developers,pgim_real_estate) [inferred]
        • (construction,costs,self-storage,sun_belt) [inferred]
        • (construction,costs,prudential_financial,self-storage) [inferred]
        • (construction,developers,sun_belt) [inferred]
        • (construction,developers,interest,self-storage) [inferred]
        • (construction,costs,menifee) [inferred]
        • (construction,costs,developers,sun_belt) [inferred]
        • (construction,costs,sun_belt) [inferred]
        • (construction,costs,menifee,self-storage) [inferred]
        • (construction,costs,developers,investment) [inferred]
        • (construction,costs,investment) [inferred]
        • (construction,developers,finance,self-storage) [inferred]
        • (construction,developers,markets,self-storage) [inferred]
        • (construction,costs,investment,self-storage) [inferred]
        • (construction,costs,markets) [inferred]
        • (construction,costs,developers,prudential_financial) [inferred]
        • (construction,costs,pgim_real_estate,self-storage) [inferred]
        • (construction,developers,self-storage,sun_belt) [inferred]
        • (construction,costs,developers,markets) [inferred]
        • (construction,costs,prudential_financial) [inferred]
        • (construction,developers,pgim_real_estate) [inferred]
        • (construction,costs,developers,menifee) [inferred]
        • (construction,costs,markets,self-storage) [inferred]
        • (construction,costs,pgim_real_estate) [inferred]
        • (construction,developers,menifee) [inferred]

    • WIP - Back to HLA
      • Last year, 245 self-storage construction projects were abandoned, more than double the number from the year before, according to Yardi Matrix. ...
      • High Level Abstractions:
        • (construction,yardi_matrix)
        • (self-storage,construction,yardi_matrix)
        • Inferred entity relationships (3)
        • (construction,self-storage,sparefoot) [inferred]
        • (construction,self-storage,united_states) [inferred]
        • (construction,self-storage,sun_belt) [inferred]

    • WIP - Back to HLA
      • According to SpareFoot, an online platform where people can search for storage units, the average monthly rent for a unit in the United States was $85.14 as of March, down from $108.58 two years earlier. ...
      • High Level Abstractions:
        • (construction,sparefoot)
        • (construction,united_states)
        • (construction,rent)
        • (self-storage,construction,rent)
        • (self-storage,construction,united_states)
        • (self-storage,construction,sparefoot)
        • Inferred entity relationships (6)
        • (construction,self-storage,sparefoot) [inferred]
        • (construction,self-storage,yardi_matrix) [inferred]
        • (construction,rent,self-storage) [inferred]
        • (construction,self-storage,united_states) [inferred]
        • (construction,self-storage,sun_belt) [inferred]
        • (construction,rent) [inferred]

    • WIP - Back to HLA
      • "It was really attractive in the moment, but as soon as you go through planning, building, by the time you deliver, you're kind of in a different market," he said.. . Many developers, spurred by the pandemic to invest money in new self-storage facilities, have been caught short by this drop in demand ...
      • High Level Abstractions:
        • (self-storage,pandemic,market)
        • (pandemic,developers,market)
        • (pandemic,market)
        • (self-storage,developers,pandemic,market)
        • (self-storage,developers,market)
        • Inferred entity relationships (9)
        • (developers,market,pandemic) [inferred]
        • (market,pandemic,self-storage) [inferred]
        • (market,self-storage,yardi) [inferred]
        • (market,self-storage,yardi_matrix) [inferred]
        • (developers,market,pandemic,self-storage) [inferred]
        • (developers,market,self-storage) [inferred]
        • (market,pandemic) [inferred]
        • (market,self-storage,tyson_huebner) [inferred]
        • (market,self-storage,software) [inferred]

    • WIP - Back to HLA
      • Over the next two years, millions of square feet of self-storage projects are expected to open up.. . Higher interest rates also make it harder for developers of storage facilities to finance construction ...
      • High Level Abstractions:
        • (self-storage,developers,interest)

    • WIP - Back to HLA
      • The demand for self-storage cooled right as a glut of new supply hit the market, particularly in cities like Phoenix and Atlanta, said Tyson Huebner, the director of research at Yardi Matrix, a division of the property-management software firm Yardi. ...
      • High Level Abstractions:
        • (self-storage,market,software)
        • (self-storage,yardi_matrix,yardi)
        • (self-storage,yardi_matrix,software)
        • (self-storage,yardi_matrix,property-management)
        • (self-storage,yardi,software)
        • (self-storage,yardi,property-management)
        • (self-storage,market,property-management)
        • Inferred entity relationships (8)
        • (property-management,self-storage,yardi) [inferred]
        • (self-storage,yardi,yardi_matrix) [inferred]
        • (self-storage,software,yardi_matrix) [inferred]
        • (market,self-storage,yardi) [inferred]
        • (property-management,self-storage,yardi_matrix) [inferred]
        • (self-storage,software,yardi) [inferred]
        • (market,self-storage,yardi_matrix) [inferred]
        • (market,self-storage,tyson_huebner) [inferred]

    • WIP - Back to HLA
      • The demand for self-storage cooled right as a glut of new supply hit the market, particularly in cities like Phoenix and Atlanta, said Tyson Huebner, the director of research at Yardi Matrix, a division of the property-management software firm Yardi ...
      • High Level Abstractions:
        • (self-storage,yardi_matrix,director)
        • (self-storage,market,director)
        • (self-storage,market,tyson_huebner)
        • (self-storage,yardi,tyson_huebner)
        • (self-storage,yardi_matrix,market)
        • (self-storage,yardi_matrix,tyson_huebner)
        • (self-storage,yardi,market)
        • Inferred entity relationships (7)
        • (self-storage,tyson_huebner,yardi) [inferred]
        • (self-storage,yardi,yardi_matrix) [inferred]
        • (market,self-storage,yardi) [inferred]
        • (market,self-storage,yardi_matrix) [inferred]
        • (self-storage,tyson_huebner,yardi_matrix) [inferred]
        • (market,self-storage,tyson_huebner) [inferred]
        • (market,self-storage,software) [inferred]

    • WIP - Back to HLA
      • . Yardi Matrix forecast that self-storage revenue could outright decline in 2024 for the first time since the financial crisis in 2008 ...
      • High Level Abstractions:
        • (self-storage,yardi,revenue)
        • (self-storage,yardi,forecast)
        • Inferred entity relationships (1)
        • (self-storage,yardi,yardi_matrix) [inferred]

    • WIP - Back to HLA
      • According to the Self Storage Association, a trade group, around 11 percent of U.S. households have a self-storage unit, but there isn't enough new demand to make up for the many new facilities that have popped up around the country ...
      • High Level Abstractions:
        • (self-storage,self_storage_association,households)
        • (self-storage,self_storage_association,trade)
        • Inferred entity relationships (2)
        • (self-storage,self_storage_association,timothy_dietz) [inferred]
        • (self-storage,self_storage_association,trade) [inferred]

    • WIP - Back to HLA
      • For existing self-storage operators, it's much more expensive to do business today, said Timothy Dietz, the president and chief executive of the Self Storage Association ...
      • High Level Abstractions:
        • (self-storage,self_storage_association,timothy_dietz)
        • Inferred entity relationships (1)
        • (self-storage,self_storage_association,trade) [inferred]

    • WIP - Back to HLA
      • For existing self-storage operators, it's much more expensive to do business today, said Timothy Dietz, the president and chief executive of the Self Storage Association. ...
      • High Level Abstractions:
        • (self-storage,self_storage_association,president)
        • (self-storage,self_storage_association,executive)
        • Inferred entity relationships (2)
        • (self-storage,self_storage_association,timothy_dietz) [inferred]
        • (self-storage,self_storage_association,trade) [inferred]

    • WIP - Back to HLA
      • households have a self-storage unit, but there isn't enough new demand to make up for the many new facilities that have popped up around the country. ...
      • High Level Abstractions:
        • (self-storage,self_storage_association,country)
        • Inferred entity relationships (2)
        • (self-storage,self_storage_association,timothy_dietz) [inferred]
        • (self-storage,self_storage_association,trade) [inferred]

    • WIP - Back to HLA
      • Previously, the increases would happen after customers had been renting for around a year, but "now, that's hitting in Month 2 or 3 - the move-in rates now are almost like a promotional rate," said Kristin Millington, the director of the self-storage and manufactured housing groups at Crow Holdings Capital, a real estate development and investment firm ...
      • High Level Abstractions:
        • (self-storage,investment,move-in)
        • (self-storage,investment,renting)
        • (self-storage,investment,manufactured)

    • WIP - Back to HLA
      • As the industry cuts so-called street rates to entice new customers, its existing customers are paying substantially higher rates that are sometimes raised twice or more in a year ...
      • High Level Abstractions:
        • (pandemic,industry,so-called)
        • (pandemic,industry,paying)
        • (pandemic,paying)
        • Inferred entity relationships (4)
        • (pandemic,paying) [inferred]
        • (industry,pandemic,paying) [inferred]
        • (pandemic,so-called) [inferred]
        • (industry,pandemic,so-called) [inferred]

    • WIP - Back to HLA
      • Chu is caught in an industry that was booming a few years ago during the coronavirus pandemic but now finds it has built way too many rental units. ...
      • High Level Abstractions:
        • (pandemic,industry,coronavirus)
        • Inferred entity relationships (2)
        • (industry,pandemic,paying) [inferred]
        • (industry,pandemic,so-called) [inferred]

    • WIP - Back to HLA
      • During the pandemic, a wave of city dwellers fled their homes as offices closed, many searching for more outdoor space and residences closer to family. ...
      • High Level Abstractions:
        • (pandemic,space)

    • WIP - Back to HLA
      • Chu is caught in an industry that was booming a few years ago during the coronavirus pandemic but now finds it has built way too many rental units. As the industry cuts so-called street rates to entice new customers, its existing customers are paying substantially higher rates that are sometimes raised twice or more in a year ...
      • High Level Abstractions:
        • (pandemic,so-called)

    • WIP - Back to HLA
      • One of the reasons for the drop in demand is that people aren't relocating as much. During the pandemic, a wave of city dwellers fled their homes as offices closed, many searching for more outdoor space and residences closer to family ...
      • High Level Abstractions:
        • (pandemic,dwellers)