Self Storage National Report – September 2024

The decline in advertised asking rents is fueling uncertainty for self storage acquisition and development. Nevertheless, investor interest remains high and there is an expectance of interest rate cuts and moderation in the decline of rental rates over the following months.

Advertised asking rates have remained negative on an annual basis as of August, as the overall advertised street rate per square foot fell to $16.31, a 4.3 percent decline year-over-year. Annually, advertised street rates for the 10×10 non-climate-controlled and climate-controlled units declined 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 0.5 percent or eight cents, to $16.31. This is the second consecutive month of decreases after a busier summer leasing season. Of the top 30 metros tracked by Yardi Matrix, six registered improvement, while 24 showed a decrease. Columbus remains the most affordable metro at $12.39, showing a 0.4 percent monthly increase.

Dwindle in new supply

As of August, there were 3,408 self storage properties in all stages of development nationwide. The pipeline included 837 under construction, 2,063 planned projects and 508 prospective properties. The under-construction projects made up 3.4 percent of the total stock, 10 basis points lower than the previous month.

New projects will come online this year and in 2025, but interest rates and the overall rental movement show a slowdown in construction activity. According to the Yardi Matrix forecast in the 2024 third quarter update, deliveries declined by 9.4 percent in 2024 from 2023.

Download the latest Yardi Matrix self storage report.