Self Storage Rents Continue Yearly Decline
Month-over-month rent growth remained flat natonally.
As of June, national street rates for 10×10 climate-controlled units fell 5.3 percent, the most sizable year-over-year decline since May 2020, when the annual decline was 6.7 percent. The decline was extensive, as rates for 10×10 climate-controlled units decreased in all top markets except one. Only Charlotte saw rates for this unit type remain level. Meanwhile, rates for the 10×10 non-climate-controlled units registered a 3.8 percent annual drop nationally.
Month-over-month, the combined street rates for the 10×10 non-climate-controlled and climate-controlled units remained unchanged nationally, staying at $134. The combined rates remained unchanged across 15 of the top 31 metros, while the averages increased in 14 metros and decreased in two. Chicago and Washington, D.C. had the largest monthly gains, as rates increased by $2 to $123 and $160, respectively. On the other end of the spectrum, Portland rates fell to $144 and Inland Empire rates to $140.
Self storage developers keep busy
As of June, the national development pipeline included 4,751 self storage properties in various stages of development. There were 1,913 planned projects, 1,353 abandoned developments, 810 under construction, 622 prospective properties, and 53 deferred ones. The under-construction portion of the pipeline made up 3.6 percent of the existing inventory, unchanged from the previous month.
Even if Orlando’s new-supply pipeline relative to total stock dropped 120 basis-point to 7.0 percent, the maintained its top position. As of June, Orlando had more than 1.9 million square feet of projects under construction. Four facilities came online during June throughout the metro, and there were an additional 3.1 million square feet of projects in the planning stages to feed the sizeable pipeline.