Self Storage National Report – February 2025
A few top metros saw advertised asking rent improvement, according to Yardi Matrix research.
Growth in the self storage sector remains limited. Despite low introductory rates and rate increases for existing customers, experts expect the pace of advertising rate declines to slow down in the following months. As for transaction activity, buyers and sellers are still adjusting to the recent pricing trends and higher interest rates.
The overall advertised street rate fell to $16.32 in January, a 1.2 percent decline year-over-year. Annually, 10 of the top 30 metros saw improvement in advertised rates for non-climate-controlled units, while nine of the top 30 metros showed an increase in advertised street rates in climate-controlled units compared to January 2024.
On a monthly basis, average advertised street rates per square foot for the 10×10 non-climate and climate-controlled units combined increased by 0.3 percent to $16.32. Of the top 30 metros tracked by Yardi Matrix, six showed negative movement, two remained flat, while 22 saw an increase in advertised rate growth.
Development pipeline shows signs of moderation
As of January, there were 3,240 self storage properties in all stages of development nationwide. The pipeline included 783 under construction, 2,015 planned and 442 prospective properties. The under-construction pipeline made up 3.1 percent of the total stock, down 10 basis points from the previous month.
Philadelphia had the largest increase in construction activity month-over-month, up 0.6 percent. The metro’s construction pipeline equals 4.9 percent of existing stock and due to a large amount of supply in lease-up, Philadelphia will likely continue to underperform.
Download the latest Yardi Matrix self storage report.
