Self Storage Market Outlook – October 2024

Read the latest Yardi Matrix Self Storage Market Outlook.

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On a monthly basis, 29 out of the 30 metros recorded contractions, while Seattle saw its advertised asking rent growth stay flat, according to the latest Yardi Matrix self storage market outlook.

Key Takeaways

• As of September, advertised asking rent movement continued to be negative, with the average annualized same-store asking rent per square foot down 3.5 percent for the combined mix of unit sizes and types.
• Same-store advertised asking rates for the combined non-climate-controlled units were down 3.1 percent year-over-year, while rates for climate-controlled units fell by 4.3 percent.
• All but one out of the 30 metros tracked by Yardi Matrix saw contractions month-over-month, while Seattle’s asking rent growth remained flat, as per square foot rates were down 100 basis points, to $16.55.
• The national-under construction pipeline equaled 3.4 percent of existing inventory, remaining unchanged month-over-month.

Monthly decrease in advertised asking rent

In September, the national average annualized same-store advertised asking rent per square foot was $16.55 for the combined mix of unit and sizes. This figure market a 3.5 percent decrease compared to September 2023. Rates for combined non-climate-controlled units fell by 3.1 percent on a year-over-year basis as of September, while same-store advertised asking rates for climate-controlled units decreased by 4.3 percent. In almost every market, the rates for smaller-size units were weaker than those for larger units.

In September, nearly all of the top 30 metro areas had negative advertised street rate movement year-over-year. The decrease in combined same-store advertised rates for non-climate-controlled units and climate-controlled units ranged between -0.5 percent in Portland to -8.3 percent in Atlanta, while Washington D.C.’s rate for non-climate-controlled units was up 0.5 percent.

Under-construction pipeline at a standstill

On a national level, new supply in the last three years has 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.

With one of the largest under-construction pipelines, only matched by Orlando, Phoenix has become the top metro as of September at 6.5 percent of existing stock. That shows a 50-basis-point increase monthly and also a 370-basis-point growth compared to its pipeline in September 2023.

Yardi Matrix keeps track of a total of 3,418 self storage properties in various stages of development across the U.S. The development pipeline included 850 under construction, 2,065 planned and 503 prospective properties. As of September, the under-construction pipeline accounted for 3.4% of existing stock, remaining unchanged from the previous month.

A total of 10 out of the top 30 metros tracked by Yardi Matrix recorded an increase in the under-construction pipeline, six metros showed contractions and the remaining 14 stagnated. That includes San Jose, which remains at 0% stock as of September due to a lack of construction starts in 2023 and 2024.

Despite the under-construction pipeline still being up 7.5 percent year-over-year, the Yardi Matrix fourth quarter storage supply forecast shows for a 10 percent decline in supply in 2024.

Read the full Yardi Matrix National Self Storage Market Outlook: October 2024.