Read the latest Yardi Matrix Self Storage Market Outlook.
On a monthly basis, 14 out of the 30 metros recorded contractions, while the remaining 16 saw advertised asking rent growth increase or remained flat, according to the latest Yardi Matrix self storage market outlook.
Key takeaways
- As of December, the advertised asking rent movement continued to be negative, with the average annualized same-store asking rent per square-foot down 2.3 percent for the combined mix of unit sized and types.
- Same-store advertised asking rates for the combined non-climate-controlled units were down 2.0 percent year-over-year, while rates for climate-controlled units fell by 2.8 percent.
- Out of the top 30 metros tracked by Yardi Matrix, 14 saw contractions month-over-month, while sixteen recorded advertised rate growth increase or remained unchanged, as the overall per square foot rate rates stayed flat, to $16.28.
- The national under-construction pipeline equaled 3.1 percent of existing inventory, down 10 basis points from the previous month.
YoY advertised rate performance declines at a slower pace
In December, the national average annualized same-store advertised asking rate per square foot was $16.28 for the combined mix of unit and sizes. This figure marks a 2.3 percent decrease compared to December 2023 but has moved at a slower rate than in the previous 20 months. This decrease was also less than its -3.5 percent average over the past 12 months. Rates for combined non-climate-controlled units were down 2.0 percent on a year-over-year basis as of December, while same-store advertised asking rates for climate-controlled units decreased by 2.8 percent.
In December, 28 of the top 30 metros had negative advertised street rate movement year-over-year for non-climate-controlled units, while rates dropped in 27 out of 30 metros for climate-controlled units.
Under-construction pipeline slowly easing
On a national level, new supply in the last three years accounted for 8.8 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 3,305 self storage properties in various stages of development across the U.S. The development pipeline included 790 under construction, 2,053 planned and 462 prospective properties. As of December, the under-construction pipeline accounted for 3.1 percent of existing stock, a 10-basis-point drop from the previous month.
Orlando and Houston had the only increase in construction activity month-over-month, as the metros were up 0.3 percent in December. San Jose also remains the only metro with no new supply under construction, which is projected to remain flat in 2025, with deliveries expected to stay low in 2026 and 2027.
Read the full Yardi Matrix National Self Storage Market Outlook: January 2025.
Add Comment