Self Storage National Report – October 2024
Advertised asking rates remained negative on an annual basis, according to Yardi Matrix.
Self storage fundamentals remain weak, but following the Federal Reserve interest rate cut in September, there is more certainty in the sector’s investment market, while industry experts are waiting for the third quarter same-store results.
Advertised asking rates have remained negative on an annual basis as of September, as the overall advertised street rate per square foot fell to $16.55, a 3.5 percent decline year-over-year. Annually, advertised street rates for the 10×10 non-climate-controlled and climate-controlled units declined in nearly all of the top 30 metros tracked by Yardi Matrix, except Washington D.C., which was up 0.4 percent.
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 $16.55. This is the third consecutive month of decreases after a shorter-than-normal leasing season.
Of the top 30 metros tracked by Yardi Matrix, 29 showed a decrease, while Seattle was the only metro that remained flat. Columbus remains the most affordable metro at $12.71, showing a 1.9 percent monthly decrease.
Under-construction pipeline stagnates
As of September, there were 3,418 self storage properties in all stages of development nationwide. The pipeline included 859 under construction, 2,065 planned projects and 503 prospective properties. The under-construction projects made up 3.4 percent of the total stock, unchanged from the previous month.
The deceleration in development activity is moving at a slower pace, with construction starts being persistent so far this year. Nevertheless, Yardi Matrix’s fourth quarter 2024 storage supply forecast calls for a 10 percent decline in 2024.
Download the latest Yardi Matrix self storage report.
