Read the latest Yardi Matrix Self Storage Market Outlook.
On a monthly basis, eight out of the top 31 metros had a positive rent growth, while one remained flat.
Key Takeaways
- As of March, the annual street rate continued to be negative, with the average annualized same-store asking rent per square foot down 4.5 percent for the combined mix of unit sizes and types.
- Annually, the same-store asking rates for the combined non-climate-controlled units were down 4.2 percent, while the same-store asking rates for climate-controlled units fell 4.9 percent.
- On a monthly basis, eight out of the top 31 metros tracked by Yardi Matrix showed positive growth, while one remained flat, as the street rates per square foot fell by 0.2 percent, or 3 cents, to $16.25.
- The national under-construction pipeline equaled 3.7 percent of existing inventory, unchanged from the previous month.
Street rate negative on a yearly basis
In March, the national average annualized same-store asking rent per square foot was $16.25 for the combined mix of unit types and sizes. This figure marked a 4.5 percent decrease to the $17.21 average of March 2023. Same-store national street rates for combined non-climate-controlled units fell 4.2 percent on a yearly basis as of March, a rapid deceleration compared to its average performance over the past three months, showing a 3.3 percent decline. Same-store asking rates for climate-controlled units decreased 4.9 percent on an annual basis, a 100-basis-point contraction, as the average rates were down 3.9 percent from December through February.
In March, all the top 31 metro areas had negative street rate growth year-over-year. The decrease in combined same-store rates for non-climate-controlled units and same-store climate-controlled units, ranged between -2.4 percent in Denver and -7.5 percent in Atlanta.
The average national combined street rates per square foot fell by 3 cents, to $16.25, a 0.2 percent decline. The negative performance in March comes as a contrast to what is historically considered a busier leasing season which would usually lead to a rise in street rates. Columbus remains the most affordable metro, as the March average combined street rates per square foot were down 1.1%, to $11.96.
Stagnation in new supply
On a national level, new supply in the last three years has accounted for 8.5 percent of stock at the beginning of the period. Meanwhile, deliveries equaled 2.9 percent of that amount during the previous 12 months.
Philadelphia is leading the nation, as the metro had the largest amount of new supply delivered over the past three years, equal to 15.3 percent of starting stock and an inventory under construction registering at 5.1 percent of existing inventory.
Yardi Matrix keeps track of a total of 3,521 self storage properties in various stages of development across the U.S. The development pipeline includes 877 under construction, 2,055 planned and 589 prospective properties. As of March, the under-construction portion of the pipeline accounted for 3.7 percent of stock, unchanged from the previous month.
Portland registered the largest increase in construction activity in March, seeing a 50-basis-point month-over-month gain, followed by Phoenix, Charleston, New York and Miami. Nevertheless, Portland’s under construction pipeline remains small, as its inventory under construction accounted for 2.8 percent of existing net rentable square feet.
Read the full Matrix Self Storage National Report-April 2024
Add Comment