On a monthly basis, three top markets recorded monthly rate growth for the 10×10 units with the New York metro having the largest increase.
Key Takeaways:
- As of July, street rates for the 10×10 unit types continued to decline on a year-over-year basis for all of the top metros tracked by Yardi Matrix.
- The national average street rates for the 10×10 units combined declined on a monthly basis as well, however a small number of metros saw increases or stagnated.
- Month-over-month, New York had the average street rates for 10×10 units combined increase to $261, the largest increase among the top metros.
- Construction activity remained steady, despite the national under-construction pipeline falling to 3.6 percent of existing inventory, down 10 basis points compared to the previous month.
As of July, the overall national street rate dropped to $141, registering a 70-basis-point fall compared to the previous month. Rates however were up by historical standards, as the national July 2019 average stood at $126, and the figure remained unchanged in July 2020. The rate falls short compared to the stellar performance of the past couple of years, as the July 2021 national street rate was $143 and the July 2022 value was $147.
Looking at annual performance on a metro level, street rates for the 10x10 non-climate-controlled units declined in all of the top 31 metros tracked by Yardi Matrix. The same was true for the 10x10 climate-controlled units.
Month-over-month, the average street rates for the 10x10 non-climate-controlled and climate-controlled units combined fell $1 to $134. The decline was widespread, as most of the metros mirrored this trend with Washington, D.C. registering the largest losses with rates falling $3 to $157. On the other end, New York had the largest gains with rates increasing $2 to $261. Overall, three metros saw rate gains and the combined rates for the 10x10 non-climate-controlled and climate-controlled units stagnated in six metros.
A robust new development pipeline
As of July, there were 4,916 self storage projects in various phases of development on a national level. The new-development pipeline included 1,977 planned facilities, 1,375 abandoned projects, 830 self storages under construction, 672 prospective properties, and 62 deferred ones. The under construction projects made up 3.6 percent of the total inventory, decreasing 10 basis points month-over-month.
Orlando had nearly 2 million square feet of storage space under construction amounting to 7.1 percent of existing inventory. The metro maintained its leading position among the top 31 markets in terms of relative new supply, even as the supply fell 20 basis points compared to the June value. Orlando developers worked to add onto the metro’s 8.9 net square feet of storage space available per capita, which lies above the 7.3 national average.
New York was among the best performers when it comes to monthly street rate performance and the metro also led the nation when it comes to construction activity. New York had the largest development pipeline with more than 4.6 million net rentable square feet of storage space under construction.
Read the full Matrix Self Storage National Report-August 2023.
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