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U.S. Self Storage Street Rates Lag on Elevated Supply, Yardi Matrix Reports

‘Rough slog’ predicted as deliveries continue depressing prices

SANTA BARBARA, Calif.,
Oct. 24, 2019 – New deliveries
continue to weigh on street rates in almost all U.S. self storage markets, according
to a new report from Yardi®
Matrix.

New ground-up
projects plus conversions and expansions produced a 2.5% year-over-year decline
in street rates for standard 10×10 non-climate controlled units in September
2019. Rates fell in about 85% of the top markets that Yardi Matrix tracks compared
to September 2018. Properties under construction or in the planning stages
accounted for 9.4% of total self storage stock in September, a 10-basis-point
increase over the previous month.

“Looking ahead,
the self storage industry is in for a rough slog: Deliveries are expected to
remain elevated, pushing down pricing for many operators and increasing the
need for improved performance through tightened operating costs and better
efficiency,” says the report, which compiles data from more than 27,000 U.S. self storage projects that are
completed or in various stages of development.

More information
about the development pipeline, demand in secondary markets and rates in 31
U.S. metros is available in the Yardi Matrix national self storage report
for October 2019.

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

About Yardi

Yardi® develops and
supports industry-leading investment and property management software for all
types and sizes of real estate companies. Established in 1984, Yardi is based
in Santa Barbara, Calif., and serves clients worldwide. For more information on
how Yardi is Energized for Tomorrow, visit yardi.com.