Street rates are still on the rise for non-climate controlled units
SANTA BARBARA, Calif., August 20, 2021 – Yardi® Matrix reports that in July, self storage street rates across the nation continued to grow as the sector benefited from ongoing consumer demand.
National street rates for 10×10 non- climate-controlled (NON CC) units increased by 10.4% percent compared to July 2020, and rates nationwide for 10×10 climate-controlled (CC) units rose by 12.4 percent year-over-year. On a monthly basis, national street rates for 10×10 NON CC units saw a 0.8 percent uptick, while rates for 10×10 CC units jumped 1.4 percent month-over-month.
“Storage REITs reported exceptionally strong second quarters, seeing record-setting occupancies and improved outlooks for the remainder of 2021,” say Matrix analysts. “However, as both developer interest in the asset type and the new-supply pipeline keep growing, the industry may begin to face stronger supply headwinds in the long term.”
The national new-supply pipeline increased by 20 basis points month-over-month (as a percent of existing inventory), and the share of existing projects in planning or under construction accounts for 8.5 percent of existing inventory.
Matrix tracks a total of 2,357 U.S. self storage properties in various stages of development—comprising 582 under construction, 1,293 planned and 482 prospective properties. Matrix also maintains operational profiles for 26,861 completed self storage facilities across the United States, bringing the total data set to 29,218 in 134 storage markets nationwide. Read the latest self storage report.
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.
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.