National street rates increased more than 10 percent last month compared to May 2020
SANTA BARBARA, Calif., June 22, 2021 – Self storage street rates again improved nationwide in May as the sector enjoys a post-pandemic recovery. Operating pricing power continues to be very strong, states the new Yardi Matrix National Self Storage Report.
In May 2021, street rates on a national level for 10×10 non-climate-controlled (NON CC) units increased by 10.7% compared to May 2020, and rates for 10×10 climate-controlled (CC) units grew by 12.8% on an annual basis.
On a monthly basis, national street rates for 10×10 NON CC units accelerated 1.6% to an average of $124, while rates for 10×10 CC units rose 2.2% month-over-month to an average of $141.
“National average rates for both 10×10 non-climate-controlled and climate-controlled units have bounced back to prices not seen since 2017, before the most recent supply boom began,” write Matrix analysts. “Meanwhile, the new-supply pipeline has remained steady. As investor appetite grows for the strong-performing asset, development activity will likely continue to increase.”
Yardi Matrix tracks a total of 2,262 self storage properties, including 575 under construction, 1,223 planned and 464 prospective properties. Matrix also maintains profiles for 26,732 operating self storage facilities, bringing the data set to 28,994.
In May, the national new-supply pipeline as a percent of existing inventory increased by 20 basis points month-over-month, and the share of existing projects in planning or under construction stages made up 8.3% of existing inventory.
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