Historic Highs Are Behind for Self Storage
Overall street rates were down month-over-month, amid yearly cooldown.
As of July, the overall national street rate dropped to $141. The figure failed to meet the outstanding performance in the past couple of years, as the July 2021 national street rate was $143 and the July 2022 value was $147. However, rates were up by historical standards, as the July 2019 national average stood at $126, the same as the July 2020 value.
Year-over-year, street rates for the 10×10 non-climate-controlled units declined in all of the top 31 metros tracked by Yardi Matrix. Rates decreased in all metros for 10×10 climate-controlled units as well.
On a monthly basis, the average street rates for the 10×10 non-climate-controlled and climate-controlled units combined were down $1 to $134. The decline was extensive, as rates declined in 22 of the top 31 metros.
Adding to the new-supply pipeline
As of July, on a national level, there were 4,916 self storage projects in all stages of development. The new-supply pipeline included 1,977 planned projects, 1,375 abandoned facilities, 830 developments under construction, 672 prospective properties, and 62 deferred ones. The under-construction projects made up 3.6 percent of the total inventory, amounting to a 10 basis point slide month-over-month.
Orlando had nearly 2 million square feet of storage space under construction amounting to 7.1 percent of existing inventory. The metro maintained its leading position among the top 31 markets in terms of relative new supply. Orlando developers worked to expand metro’s 8.9 net square feet of storage space available per capita, which lies above the 7.3 national average.