Bozeman Self-Storage Operators: Sell? Hold? Find Out Your Facility’s Worth?
Population Boom and Rising Self-Storage Rents in Gallatin County
Throughout the year, Sterling CRE’s research team surveys pricing for major self-storage markets in Montana. That includes Missoula, the Bitterroot Valley, the Flathead area, Bozeman, Billings, and Helena. Pricing data helps self-storage clients stay competitive and relevant in the current market by providing asking rents for a variety of unit sizes.
For years, self-storage markets have heated in Montana. Dropping interest rates, compressed cap rates, and spiking demand have pushed up self-storage values. And for Bozeman, Montana, pronounced population growth is likely the cause of another spike, this time in rental rates.
The most recent survey of statewide self-storage unit pricing revealed significant price jumps in the Bozeman area. The prices were so out of step with normal growth that we dug deeper into the data – here’s what we found.
Four Corners and Belgrade self-storage rents were more in line with other markets in Montana. As a result, the Gallatin County rental rates looked to be similar to markets of similar sizes, such as Missoula. However, by separating the submarkets within Gallatin County, we found a 14% increase in Bozeman for non-climate controlled units. That number jumps even higher for climate-controlled units because of a lack of availability (stay tuned for more on this in future posts).
Thinking of selling your Bozeman self-storage facility? Operators in Gallatin County (as well as other growing markets like Missoula, the Bitterroot Valley, and the Flathead area) considering selling are encouraged to contact self-storage expert Claire Matten, CCIM. You can also contact Matten to receive the next self-storage newsletter with updated rates from across the state.