Self Storage National Report – March 2025

Ongoing challenges in the self storage sector are reflected in the 2024’s fourth quarter REIT results. Drops in occupancy and rates are driving the overall decline, but the forecast shows some improvement, particularly for the second half of the year. Transaction activity is also expected to maintain last year’s momentum due to well-capitalized private owners and operators which have remained very active.

The overall advertised street rate fell to $16.42 in February, a 0.8 percent decline year-over-year. Annually, 11 of the top 30 metros saw improvement in advertised rates for non-climate-controlled units, while 14 of the top 30 metros showed an increase in advertised street rates in climate-controlled units compared to February 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 $16.42. Of the top 30 metros tracked by Yardi Matrix, 26 saw an increase in advertised asking rate growth, while the remaining four showed negative movement, such as Austin, Phoenix, San Antonio and Las Vegas.

Supply under construction moderating

As of February, there were 3,153 self storage properties in all stages of development nationwide. The pipeline included 740 under construction, 1,989 planned and 424 prospective projects. The under-construction pipeline made up 2.9 percent of the total stock, down 10 basis points from the previous month.

The forecast shows a continuous drop in supply under-construction, as new square footage is expected to drop 15.0 percent in 2025, 18.0 percent in 2026 and 8.0 percent in 2027.

As of February, Washington, D.C., had the largest decrease in construction activity, down 10 percent month-over-month, while Phoenix had the most supply under construction, equivalent to 6.6 percent of existing stock.

Download the latest Yardi Matrix self storage report.