Self Storage Asking Rents Continue to Drop, Reports Yardi Matrix

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Jun 25, 2024, 08:00 ET

Annual average street rates were lower in May across all major metro areas tracked

SANTA BARBARA, Calif., June 25, 2024 /PRNewswire/ -- Current economic conditions and the impact on the real estate market continue to dampen the self storage sector's performance, which is typically strongest at this time of year, shows the latest Self Storage National Report from Yardi® Matrix.

The average annualized same store asking rent reached an average of $16.44 nationally in May 2024. That is a 4.5 percent decrease on a year-over-year (YoY) basis. A year ago, rates recorded an average 3.8 percent drop in May 2023.

All top metros tracked by Matrix saw negative street rate movement in May. Combined same-store rates for non-climate-controlled units and climate-controlled units decreased YoY.

"Interest rates are expected to remain high. This will continue to influence storage demand from home sales, as well as self storage transaction activity well into next year," say Matrix analysts.

Yardi Matrix tracks a total of 3,408 self storage properties in various stages of development, including 856 under construction, 2,015 planned and 537 prospective properties. Yardi Matrix also maintains operational profiles for 31,154 facilities, bringing the total data set to 34,562.

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 Matrix