Read the latest Yardi Matrix Self Storage Market Outlook.
On a monthly basis, 26 of the top 30 metros recorded increases in advertised asking rent growth, while the remaining four saw contractions, according to the latest Yardi Matrix self storage market outlook.
Key takeaways
- As of February, the advertised asking rent movement continued to be negative, with the average annualized same-store asking rent per square foot down 0.8 percent for the combined mix of unit sizes and types.
- Same-store advertised asking rates for the combined non-climate-controlled units were down 1.0 percent year-over-year, while rates for climate-controlled units fell by 0.6 percent.
- Out of the top 30 metros tracked by Yardi Matrix, 26 recorded advertised rate growth increase, while the remaining four saw contractions month-over-month, as the overall per square foot rates were up 0.3 percent to $16.42.
- The national under-construction pipeline equaled 2.9 percent of existing inventory, down 10 basis points from the previous month.
YoY improvement in advertised asking rates
In February, the national average annualized same-store advertised asking rate per square foot was $16.42 for the combined mix of unit and sizes. This figure marked a 0.8 percent decrease compared to February 2024. The rates are not only declining at a slower rate than in the previous 27 months but are also showing an improvement from the -1.1 percent in January and -2.2 percent in December.
Rates for combined non-climate-controlled units were down 1.0 percent on a year-over-year basis as of February, while same-store advertised asking rates for climate-controlled units decreased by 0.6 percent. In February, rates were up in 11 of the top 30 metros year-over-year for non-climate-controlled units, while rates were up in 14 of the top 30 metros for climate-controlled units.
Moderate supply under construction
On a national level, new supply in the last three years accounted for 9.3 percent of stock at the beginning of the period. Meanwhile, deliveries equaled 3.0 percent of that amount during the previous 12 months.
Yardi Matrix keeps track of a total of 3,153 self storage properties in various stages of development across the U.S. The development pipeline included 740 under construction, 1,989 planned and 424 prospective properties. As of February, the under-construction pipeline accounted for 2.9 percent of existing stock, a 10-basis-point drop from the previous month.
The forecast shows a drop in supply under construction, as new square footage is predicted to drop 15.0 percent in 2025, 18.0 percent in 2026 and 8.0 percent in 2027.
With a construction pipeline equal to 4.9 percent of existing stock, Washington, D.C., had the largest decrease in construction activity, contracting 1.0 percent month-over-month. Meanwhile, Phoenix registered an increase in construction activity over the past year and had the most supply under construction, equal to 6.6 percent of existing stock as of February.
Read the full Yardi Matrix National Self Storage Market Outlook: March 2025
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