Self Storage Rate Decline Slowed in January, Yardi Matrix Reports

High inventory levels cool growth although demographics remain positive

SANTA BARBARA, Calif.,
Feb. 25, 2020 – Supply and
development pipeline levels outpaced demand for self storage space in January
2020, producing a nationwide drop in street rates.

The most recent
supply and rate recap from Yardi®
Matrix documents a 0.9% year-over-year street
rate decline for standard 10×10 non-climate-controlled (NON CC) units. Rates
for similar-size climate-controlled (CC) units fell by 2.3%. These figures
represented about 53% and 77% of the rate declines for NON CC and CC units,
respectively, recorded in December 2019. And “demand for self storage appears
to be healthy in many markets, supported by robust employment growth and
population gains,” the report says.

Demand for self
storage in January was strongest in Las Vegas, where street rates for all 10×10
units increased 1.9% year-over-year. Philadelphia and Pittsburgh, metros with
limited inventory, experienced the biggest month-over-month increases in
development activity, 1.9% and 1.5% respectively. Pittsburgh also saw the
steepest year-over-year CC street rate decline at 7.4%.

Get the latest
data on Las Vegas, Philadelphia, Pittsburgh and 28 other U.S. metros in the Yardi
Matrix national
self storage report for February 2020.

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.