Sticky street rates, continued year-over-year growth are positive indicators
SANTA BARBARA, Calif., Feb. 17, 2022 – Despite a slight seasonal dip in occupancy, the self storage sector is beginning the year with a continuation of the strong fundamentals that fueled its success in 2021.
Self storage street rates changed little sequentially in January, reflective of positive trends in the industry, and rents remain well above trend on a year-over-year basis, according to the latest Yardi® Matrix National Self Storage Monthly report.
Street rates for 10×10 non-climate-controlled (NON CC) units were unchanged at $128 in January. National street rates for 10×10 climate-controlled (CC) units decreased by $1 in January to $145.
Year-over-year, street rates for 10×10 NON CC units grew 7.6 percent in January, while rates for 10×10 CC units grew 7.4 percent.
“Operators report that occupancy rates have dipped slightly as move-outs have increased in recent months, but that is not worrisome because properties were unusually full going into the traditional winter lull,” say Matrix analysts.
Year-over-year rent growth remains positive in all major metros, with 11 of the top 32 metros at 10 percent or more growth and 25 of the top 32 at 5 percent or more growth for NON CC units.
Rent increases continue to be highest in the Sun Belt and the Southwest, with demand fueling notable jumps in Texas, Florida and the Carolinas.
“Rates are holding firmer than historically is the case” in the winter, said John Good, CEO of NexPoint Storage Partners, during an industry webinar.
Yardi Matrix tracks a total of 3,831 self storage properties nationwide in various stages of development — including 731 under construction, 1,287 planned and 520 prospective properties. Matrix also maintains operational profiles for 27,298 completed self storage facilities across the United States, bringing the total data set to 31,129.
Learn more about the state of the self storage sector nationwide.
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.
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