Self Storage Rents Decline, Demand Stays Firm

Month-over-month rent growth remained flat in most of the top 31 metros, amid annual declines.

April 2023 Year-over-year Rent Change for 10x10 Units in the May 2023 Self Storage Report

April 2023 Year-over-Year Rent Change for 10×10 Units. Image courtesy of Yardi Matrix

In April, the average national street rate for all unit sizes increased to $141, a 70-basis-point growth rate month-over-month. Meanwhile, the average rate for the standard-sized 10×10 units combined increased by $1 or 80 basis points. Most of the top 31 metros tracked by Yardi Matrix registered no changes in the combined street rates for 10×10 non-climate-controlled and climate-controlled units on a monthly basis. On the other hand, 11 metros saw an increase in combined street rates for the standard-size 10×10 units, while only four saw decreases.

The Sacramento market had the largest monthly gains with a 140-basis-point increase to $145, followed by Washington, D.C., (130 basis points to $156), Columbus (100 basis points to $104), and San Francisco Peninsula & East Bay (100 basis points to $211).

Annually, national rates for standard-size 10×10 units declined 4.1 percent for climate-controlled units, while rates for the same-sized non-climate-controlled ones saw a 3.1 percent drop. On a metro level, Raleigh-Durham was the sole market that had positive growth in April, as rates for the 10×10 non-climate-controlled units increased by $1 to $101. On the other end of the spectrum was Las Vegas, where street rates fell 9.8 percent year-over-year for the 10×10 non-climate-controlled units. Regarding the rates for the 10×10 climate-controlled units, the downward trend ranged from a 1.4-percent drop in Nashville to a 9.4-percent drop in the Inland Empire.

Keeping an eye on development

A green self storage facility with opened unit door and cardboard boxes

Image by SeventyFour/

In April, there were 4,713 self storage properties in different stages of development. The pipeline included 1,885 planned properties, 1,328 abandoned projects, 812 facilities under construction, as well as 638 prospective projects. The underway properties comprised 3.6 percent of the total stock and this portion of the new supply pipeline remained unchanged month-over-month.

Drilling down to a market level, Orlando had the greatest new supply pipeline encompassing under-construction projects, even with its 8.7 net square feet of storage space available per capita. As of April, the metro’s pipeline amounted to 7.6 percent of its existing inventory, unchanged from March.

Only Tampa saw an increase in development activity, properties under construction across the metro equaled 3.7 percent of total stock. The new supply will add to the 8.2 net square feet available per capita, which s already above the 7.2 national figure. Despite self storage developers facing continued headwinds, a single market had seen a decrease in development activity. The Atlanta metro had 2.2 million square feet of space under construction amounting to 4.5 percent of total stock, down 10 basis points month-over-month.

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