Self Storage Industry Shows Signs of Slowing, Yardi Matrix Reports

Street rate growth continues on annual basis, but rates in some regions were flat or dropped month-over-month

SANTA BARBARA, Calif., Oct. 22, 2021 – The surge of the self storage industry appears to be slowing, according to the latest monthly National Self Storage Monthly from Yardi® Matrix.

In September, the sector once again recorded impressive positive street rate growth on an annual basis, and development activity has remained strong. However, rates in many regions across the nation remained stagnant or even decreased on a month-over-month basis. Additionally, the national new-supply pipeline as a percent of existing inventory increased by a minor 10 basis points month-over-month.

Self storage rates continue to experience strong positive momentum on an annual basis. In September, national street rates for 10×10 non-climate-controlled (NON CC) units increased 9.4 percent compared to September 2020, while rates for similar-size climate-controlled (CC) units grew 10.6 percent.

Among the top markets, Miami saw rates for standard-size NON CC units grow the most year-over-year, increasing an impressive 20 percent. With an increase of only 3.6 percent compared to September 2020, Portland experienced the lowest rate growth among the top markets.

Find details on rates and performance of the industry nationwide in the new report.

Yardi Matrix tracks a total of 2,399 self storage properties in various stages of development—comprising 663 under construction, 1,248 planned and 488 prospective properties. Matrix also maintains operational profiles for 27,117 completed self storage facilities across the United States, bringing the total data set to 29,516.

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, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.