Self Storage National Report – March 2024

Street rates were up for more than half of the metros month-over-month, the latest Yardi Matrix monthly report shows.

Market conditions have led to a transaction slowdown in the self storage sector, although there is still construction activity, as high interest rates affect fundamentals. Street rates have remained negative on an annual basis and as of February, the overall national street rate per square foot fell to $16.37, a 3.6 percent decline compared to the nationwide average recorded a year earlier. Annually, street rates for the 10×10 non-climate-controlled and climate-controlled units declined in all of the top 31 metros tracked by Yardi Matrix.

On a monthly basis, average street rates per square foot for the 10×10 non-climate-controlled and climate-controlled units combined remained mostly unchanged and saw a 1 cent increase to $16.37. Out of the 31 top metros tracked by Yardi Matrix, more than half saw an improvement as they either flattened or registered a positive monthly rate growth. Washington D.C. led gains, with a 0.7 percent uptick month-over-month for same-store combined street rates.

Robust construction pipeline

As of February, nationwide, there were 5,148 self storage projects in all stages of development. The new-supply pipeline included 2,031 planned projects, 1,546 abandoned facilities, 880 under construction, 592 prospective and 99 deferred properties. The under-construction projects made up 3.7 percent of the total inventory, a 10-basis-point decrease month-over-month.

Orlando saw a 0.1 percent drop monthly, but it is still leading the sector in terms of new supply in metros tracked by Yardi Matrix. Charleston saw the largest increase in construction activity, up 70 basis points to 4.5 percent.

Read the full Yardi Matrix national storage report here.

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