On a monthly basis, 26 out of the 30 metros recorded contractions, while Tampa saw the largest advertised asking rent growth increase, according to the latest Yardi Matrix self storage market outlook.
Key takeaways
- As of November, the advertised asking rent movement continued to be negative, with the average annualized same-store asking rent per square-foot down 2.4 percent for the combined mix of unit sizes and types.
- Same-store advertised asking rates for the combined non-climate-controlled units were down 2.1 percent year-over-year, while rates for climate-controlled units fell by 2.7 percent.
- All but four of the 30 metros tracked by Yardi Matrix saw contractions month-over-month, while the asking rate growth in Tampa, Las Vegas, Portland and Orlando increased, as per square foot rate rates were down 30 basis points, to $16.27.
- The national under-construction pipeline equaled 3.2 percent of existing inventory, down 10 basis points from the previous month.
YoY improvement in advertised rate performance
In November, the national average annualized same-store advertised asking rate per square foot was $16.27 for the combined mix of unit and sizes. This figure marks a 2.4 percent decrease compared to November 2023, but shows an improvement compared to the 3.1 percent drop in October and the -3.8 percent in September. Rates for combined non-climate-controlled units were down by 2.1 percent on a year-over-year basis as of November, while same-store advertised asking rates for climate-controlled units decreased by 2.7 percent.
In November, nearly all of the top 30 metro areas had negative advertised street rate movement year-over-year. The decrease in combined same-store advertised asking rates for non-climate-controlled units and climate-controlled units ranged between -0.6 percent in San Francisco and Seattle, to -6.2 percent in Atlanta.
Under-construction pipeline shrinking nationwide
On a national level, new supply in the last three years accounted for 8.9 percent of stock at the beginning of the period. Meanwhile, deliveries equaled 2.9 percent of that amount during the previous 12 months.
Yardi Matrix keeps track of a total of 3,341 self storage properties in various stages of development across the U.S. The development pipeline included 804 under construction, 2,063 planned and 474 prospective properties. As of November, the under-construction pipeline accounted for 3.2 percent of existing stock, a 10-basis-point drop from the previous month.
Nashville and Tampa registered the largest increase in construction activity month-over-month, as both metros were up 0.4 percent. Nashville also saw a 350-basis-point year-over-year increase and despite the lack of new supply delivered in the last 12 months, the metro’s construction pipeline could become an issue for rent growth once those properties are delivered.
Read the full Yardi Matrix National Self Storage Market Outlook: December 2024.
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