Seasonal Demand for Self Storage Returns, Says Yardi Matrix

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Jul 17, 2024, 14:06 ET

But advertised asking rents still slip in June across all major metros

SANTA BARBARA, Calif., July 17, 2024 /PRNewswire/ -- High interest rates and below-average home sales contributed to another month of slow performance in the self storage sector, according to the latest Self Storage National Report from Yardi® Matrix.

The average annualized same store advertised asking rent reached an average of $16.45 nationally in June 2024. That is a 4.9 percent decrease on a year-over-year (YoY) basis and marks a deterioration from the prior six months.

All top metros tracked by Matrix saw negative movement in advertised asking rents in June. Combined same-store advertised asking rents for non-climate-controlled units and climate-controlled units decreased YoY.

"Although rent trends and occupancy are returning to more normal, seasonal patterns, progress has been slow as storage demand is well below prior years and new deliveries have leveled off instead of dropping noticeably," said Matrix analysts.

Yardi Matrix tracks a total of 3,370 self storage properties in various stages of development, including 858 under construction, 2,011 planned, and 501 prospective properties. Yardi Matrix also maintains operational profiles for 31,451 facilities, bringing the total data set to 34,821.

Gain more information on the performance of the self storage sector.

Yardi Matrix offers the industry's most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable housing, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.

About Yardi

Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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SOURCE Yardi