Despite initially experiencing challenges due to the pandemic\u2019s disruptions earlier in the year, self storage fundamentals continue to strengthen and stabilize, especially compared to other commercial property asset types. The self storage industry ended the year strong by continuing to prove its ability to fare well, even when faced with difficult economic conditions, as street rate performance improved substantially across the nation on an annual basis. Despite the fact that the number of abandoned storage projects in the new supply pipeline continued to rise in December, development activity remained relatively stable in most markets and at the national level. However, with the strain of the health crisis continuing to be felt across much of the economy, the resiliency of self storage may be put to the test as we move into the new year.<\/p>\n
Street rate performance continued to improve significantly across the nation in December. National street rates for 10×10 non-climate-controlled (NON CC) units increased 3.5% in December on a year-over-year basis, and rates nationwide for 10×10 climate-controlled (CC) units grew by 2.3% year-over-year. While rates saw substantial growth on an annual basis, rates for both 10×10 NON CC and CC units remained flat month-over-month.<\/p>\n
Annual street rate performance was positive in roughly 94% of the top markets tracked by Yardi Matrix for 10×10 NON CC units in December. Year-over-year, only two top
\nmarkets saw negative rate performance for this unit type. By comparison, rates fell in 24 of the top markets on a year-over-year basis in December 2019.<\/p>\n