Self Storage National Report – November 2024
Advertised asking rates remained negative on an annual basis, according to Yardi Matrix.
Self storage REITs are reporting negative occupancy and revenue growth in the third quarter in 2024, indicating weak demand fundamentals. Nevertheless, despite going into the slower winter season, the YoY advertised rate growth is improving compared to the rent drops recorded by the end of 2023.
Advertised asking rates have remained negative on an annual basis as of October, as the overall advertised street rate fell to $16.35, a 3.1 percent decline year-over-year. Annually, advertised street rates for the 10×10 non-climate-controlled units declined in nearly all top metros except for Washington D.C., which was up 0.8 percent. Meanwhile the advertised street rates for the 10×10 climate-controlled units were down in all the top 30 metros tracked by Yardi Matrix.
On a monthly basis, average advertised street rates per square foot for the 10×10 non-climate and climate-controlled units combined were down 100 basis points to $16.35. This marks an improvement from the 160-basis-point drop recorded in October 2023.
Of the top 30 metros tracked by Yardi Matrix, 29 showed a decrease, while Tampa was the only metro to show a 1.1 percent increase. Columbus remains the most affordable metro at $12.63, showing a 0.5 percent monthly decrease.
Construction activity maintains momentum
As of October, there were 3,389 self storage properties in all stages of development nationwide. The pipeline included 823 under construction, 2,066 planned projects and 500 prospective properties. The under-construction pipeline projects made up 3.3 percent of the total stock, down 10 basis points from the previous month.
The near-term supply forecast has been increased for self storage for 2024 through 2026 as the construction activity kept the pace, despite a slowdown in construction starts through the middle of 2024.
Download the latest Yardi Matrix self storage report.
