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Self Storage Slows

Yardi Matrix Reports

By on Oct 25, 2022 in Matrix

Year-over-year national street rates continued to tick up slightly in September, but month-over-month gains are now declining, according to the latest National Self Storage Report from Yardi Matrix. However, revenue growth remains strong as operators focus on boosting renewal rates.

National street rates for 10×10 non-climate-controlled (NON CC) units increased 0.8 percent year-over-year in September, while rates for similar-sized climate-controlled (CC) units remained flat. The overall average street rate was up 0.7 percent, which is the slowest rate of annual growth for this category since July 2020.

The national average rate for 10×10 NON CC units fell to $148 in September, not far below the all-time high of $152 reached in July. While the national average rate for similar-sized CC units dropped to $131, that figure was only $2 short of the record set this summer.

Metros in the Southeast and Southwest continue to fare the best. For 10×10 NON CC units, only three of the top 31 Matrix-tracked self storage metros had street rate increases greater than five percent in September, while rates decreased in nine. For 10×10 CC units, none of the top 31 had five percent or more growth, while 13 metros experienced negative rate growth year-over-year.

Learn more about the state of the self storage market nationwide.

Yardi Matrix tracks a total of 4,306 self storage properties nationwide in various stages of development — including 1,649 planned, 769 under construction and 548 prospective properties. Matrix also maintains operational profiles for 28,798 completed self storage facilities across the United States, bringing the total data set to 33,104.

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, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.