{"id":5503,"date":"2023-02-10T14:16:56","date_gmt":"2023-02-10T14:16:56","guid":{"rendered":"https:\/\/www.yardimatrix.com\/blog\/?p=5503"},"modified":"2024-03-12T15:58:53","modified_gmt":"2024-03-12T15:58:53","slug":"self-storage-outlook-january-2023","status":"publish","type":"post","link":"https:\/\/www.yardimatrix.com\/blog\/self-storage-outlook-january-2023\/","title":{"rendered":"Self Storage Outlook \u2013 January 2023"},"content":{"rendered":"\n<p class=\"has-normal-font-size\">Read the latest Yardi Matrix <strong><a href=\"\/blog\/self-storage-market-outlook\/\">Self Storage Market Outlook<\/a><\/strong>.<\/p>\n\n\n<hr \/>\n<h2>Key Takeaways:<\/h2>\n<ul>\n<li>Overall, annual street-rate performance continued its decline, down 2.8 percent as of December.<\/li>\n<li>Rates for larger units outclassed those for smaller ones, with rates for 10&#215;30 units falling 2.4 percent, while rates for 5&#215;5 units were down 3.4 percent.<\/li>\n<li>On a month-over-month basis, of the 31 top markets tracked by Yardi Matrix, just one saw rates stay flat, while the others saw rates decline.<\/li>\n<li>In the upcoming years, there will likely be a slowdown in delivery due to a significant increase in development expenditures coupled with the cost of debt.<\/li>\n<\/ul>\n<p>The self storage sector <strong>closed another successful year<\/strong> as investor interest, which peaked in the summer, remained high for most of the year. Demand didn&#8217;t start to decline until the last several months of the year, as illustrated by a gradual easing of street rates and a decline in occupancy. The overall picture for the sector remains favorable due to healthy market fundamentals.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5504 size-large aligncenter\" src=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/December-2022-Y-o-Y-Self-Storage-Rent-Change.jpg?w=647\" alt=\"Self Storage Outlook January 2023: December 2022 Y-o-Y Self Storage Rent Change\" width=\"647\" height=\"587\" srcset=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/December-2022-Y-o-Y-Self-Storage-Rent-Change.jpg 647w, https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/December-2022-Y-o-Y-Self-Storage-Rent-Change.jpg?resize=300,272 300w\" sizes=\"auto, (max-width: 647px) 100vw, 647px\" \/><\/p>\n<p>Annually, street rates <strong>decreased<\/strong> in most of the markets across the country by the end of 2022. In December, street rates for 10&#215;10 non-climate-controlled units increased in seven of the top 31 metros tracked by Yardi Matrix. Only three of the top 31 markets experienced growth for 10&#215;10 climate-controlled units, while <a href=\"https:\/\/www.yardimatrix.com\/blog\/self-storage-industry-report-january-2022\/\"><strong>rates decreased year-over-year<\/strong><\/a> in the other 28 metros.<\/p>\n<h2>Rent decreases affect most markets<\/h2>\n<p>December saw a 2.8 percent annual decline in the average national street rate for all unit sizes. Despite the drop, average rates remained higher than pre-pandemic levels. A closer look reveals that rates for standard 10&#215;10 climate-controlled units dropped 3.4 percent to $142, marking a $10 decline compared to their peak values over the summer. Meanwhile, prices for the same-sized non-climate-controlled units fell by 2.3 percent annually to $126. <strong>Year-over-year rates for larger units performed better than those for smaller ones<\/strong>, as rates for 10&#215;30 units fell by 2.4 percent, compared to a 3.4-percent reduction for the 5&#215;5 units.<\/p>\n<p>When comparing monthly movements, the downward trend in street rentals continued, as the average street rates fell $2 from their November levels. Pittsburgh was the only metro to defy this trend, with street rates for 10&#215;10 non-climate-controlled and climate-controlled units combined remaining unchanged. In contrast, Orlando, Miami, and San Francisco experienced the highest monthly losses, with a $4 drop.<\/p>\n<h2>Pipeline<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5505 size-large aligncenter\" src=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/Under-Construction-Supply-by-Percentage-of-Existing-Inventory.jpg?w=857\" alt=\"Self Storage Outlook January 2023: Under-Construction Supply by Percentage of Existing Inventory\" width=\"857\" height=\"685\" srcset=\"https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/Under-Construction-Supply-by-Percentage-of-Existing-Inventory.jpg 857w, https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/Under-Construction-Supply-by-Percentage-of-Existing-Inventory.jpg?resize=300,240 300w, https:\/\/www.yardimatrix.com\/blog\/wp-content\/uploads\/sites\/39\/2023\/02\/Under-Construction-Supply-by-Percentage-of-Existing-Inventory.jpg?resize=768,614 768w\" sizes=\"auto, (max-width: 857px) 100vw, 857px\" \/><\/p>\n<p>Yardi Matrix keeps track of <strong>4,627 self storage facilities across the country that are in various stages of development<\/strong>, including 812 under construction, 1,789 planned projects and 669 prospective properties. The rate of projects underway as a percentage of existing stock remained unchanged from the previous month, at 3.6 percent as of December.<\/p>\n<p>Overall, on a month-over-month basis, just three metros added to their under-construction pipeline. Philadelphia registered a 40-basis-point increase month-over-month, upping its pipeline relative to existing stock to 6.4 percent. Orlando, with a 30-basis-point uptick, and Atlanta, a 20 basis-point increase, rounded out the list of metros with expanding development activity.<\/p>\n<p>Read the full <strong><a href=\"https:\/\/www.yardimatrix.com\/publications\/download\/File\/3344-MatrixNationalSelfStorageMonthly-January2023\">Matrix National Self Storage Monthly-January 2023<\/a><\/strong><\/p>\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: Overall, annual street-rate performance continued its decline, down 2.8 percent as of December. Rates for larger units outclassed those for smaller ones, with rates for 10&#215;30 units falling 2.4 percent, while rates for 5&#215;5 units were down 3.4 percent. On a month-over-month basis, of the 31 top markets tracked by Yardi Matrix, just [&hellip;]<\/p>\n","protected":false},"author":753,"featured_media":5507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,21],"tags":[307],"class_list":["post-5503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-self-storage-market","tag-self-storage-outlook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Self Storage Outlook \u2013 January 2023 - Yardi Matrix Blog<\/title>\n<meta name=\"description\" content=\"Despite headwinds such as street rates continuing to moderate and a slight waning in demand, self storage had another strong year, Yardi Matrix reports.\" \/>\n<meta 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