Read the latest Yardi Matrix Self Storage Market Outlook.
On a monthly basis, the under-construction pipeline represented 3.8 percent of the existing inventory, the same as in October.
Key Takeaways
- As of November, the annual street continued to be negative, with the average annualized same-store asking rent per square foot down 4.2 percent for the combined mix of unit sizes and types.
- On an annual basis, the same-store national street rates for the combined non-climate-controlled units fell 4.1 percent, while the same-store asking rates for climate-controlled units declined 4.4 percent.
- Month-over-month, all top 31 metros tracked by Yardi Matrix showed negative growth and fell 1.0 percent in November from October.
- The national under-construction pipeline equaled 3.8 percent of existing inventory, unchanged from the previous month.
Street rates down year-over-year
In November, the national average annualized same-store asking rent per square foot was $16.57 for the combined mix of unit sizes and types. Compared to the $17.40 average of November 2022, this figure marked a 4.2 decrease. November’s same-store national street rates for combined non-climate-controlled units fell 4.1 percent, following its average 4.1 percent decrease over the trailing six months. Same-store asking rates for climate-controlled units decreased 4.4 percent on an annual basis, the same as its average of -4.4 percent over the past six months.
In November, the majority of the top 31 metro areas had negative street rate growth year-over-year. New York turned out to be the exception to the rule, as the combined same-store rates for non-climate-controlled units increased 1.0 percent year-over-year. Meanwhile, the street rates for the same-store climate-controlled units across the metro decreased 1.4 percent annually.
The average national combined street rates per square foot fell 17 cents, to $16.57, marking a 1.0 percent decline month-over-month. All the top metros recorded a negative rent growth, the same as in the previous month. Columbus proved to be the most affordable metro, as the November average combined street rates per square foot fell 1.2 percent to $12.45.
The under-construction pipeline remains unchanged month-over-month
On a national level, new supply over the previous three years has accounted for 8.6 percent of the stock at the beginning of the period, while deliveries during the previous 12 months have accounted for 2.7 percent of that amount.
New York’s storage supply remains low, as completed inventory is equal to 2.4 net rentable square feet per capita. Philadelphia had the largest amount of new supply delivered over the past three years, equal to 17.1 percent of starting stock.
Yardi Matrix keeps track of a total of 5,028 self storage properties in various stages of development, across the country. The development pipeline includes 883 under construction, 1,940 planned, 631 prospective, 1,489 abandoned and 85 deferred properties. As of November, the under-construction portion of the pipeline amounted to 3.8 percent of existing stock, unchanged from the previous month.
Charleston recorded the biggest increase in construction activity in November, seeing a 150-basis point month-over-month gain. Construction in Charleston increased 3.8 percent year-over-year when inventory under construction accounted for 1.3 percent of completed net rentable square feet.
Read the full Matrix Self Storage National Report-December 2023.
Add Comment