Self Storage

While street-rate rents were down 0.9 percent over the past 12 months, all the top markets saw positive rent performance month-over-month.

While national street rates fell compared to July 2019, rate performance was positive for the standard climate and non-climate-controlled units on a month-over-month basis.

In a sign that the sector may have seen the worst of the fallout from the pandemic, the downward trend of street-rate performance is starting to slow.

The self storage sector continued to see negative effects caused by the pandemic, as street-rate performance declined in all the top markets tracked by Yardi Matrix.

The self storage sector has started to feel the impact of the coronavirus outbreak, with street-rate performance declining in 97 percent of the top markets tracked by Yardi Matrix.

After a long tenure of negative performance, street-rate rents for standard non-climate-controlled units remained unchanged year-over-year.

Although street-rate rents were down 0.9 percent year-over-year and the development pipeline is slowly shrinking, secondary and tertiary markets provide new opportunities for self storage players.

While street-rate rents were down 0.9 percent on a year-over-year basis, the rate actually indicates an 80 basis-point improvement compared to the previous month’s decrease of 1.7 percent.

Despite a slight 10 basis-point increase in the new-supply pipeline, development activity is starting to slow down in top markets tracked by Yardi Matrix.

Although metros on the West maintained rent growth, on a national level, street-rate rents have dropped 1.7 percent over the past 12 months.

Heightened construction activity continued to hinder rent growth in the storage sector across the U.S.

New projects coming online have continued to pressure self storage rents, which have dropped by 2.5 percent nationally.