Self Storage Update

Street rates for self storage properties are coming off record-high gains in 2021, and experts are optimistic the sector will continue to perform well in 2022, according to the latest National Self Storage Monthly Report from Yardi® Matrix.7 percent in December.

Street rates for self storage properties are coming off record-high gains in 2021, and experts are optimistic the sector will continue to perform well in 2022, according to the latest National Self Storage Monthly Report from Yardi® Matrix.

Year-over-year, national rates for 10×10 non-climate-controlled (NON CC) units increased 6.7 percent in December. Rates for 10×10 climate-controlled (CC) units increased 7.4 percent.

However, month-over-month, street rates for 10×10 NON CC units declined nationally by $1 to $127 in December. National street rates for 10×10 CC units declined by $1 for the third straight month to $145.

While performance is dropping back from major gains made during the summer, the growth rates are well ahead of where they were in December 2020, when national year-over-year increases were between 2-4 percent for all unit types.

The reasons for optimism include the traditional “4Ds” of self storage demand: death, divorce, dislocation and disaster. Owners/managers see demand not only from those traditional drivers, but from two new Ds: decluttering and distribution/business demand.

Executives who participated in a panel at the recent KeyBanc Capital Markets 2022 Self Storage Investor Forum all were optimistic about demand, rent growth and capital trends in the year ahead.

One commented: “As we look back on 2021 I consider it the greatest year to date in the storage industry. 2022 will be a good year for our business.”

Most operators will start spring leasing season with exceptionally high occupancy rates, giving them pricing power to increase street rates and bring existing leases up to the new market rates. Although a repeat of 2021’s 8.5 percent rate growth for 10×10 non-climate-controlled units is unlikely, Matrix analysts expect strong overall growth in 2022.

Yardi Matrix tracks a total of 3,022 self storage properties nationwide in various stages of development — including 734 under construction, 1,285 planned and 508 prospective properties. Matrix also maintains operational profiles for 27,245 completed self storage facilities across the United States, bringing the total data set to 31,053.

Learn more about the state of the self storage sector nationwide.

SHARE POST

Facebook LinkedIN

AUTHOR

Leah Etling is the founding editor of the Balance Sheet and a 12-year Yardi employee who also oversees press releases and social media. An award winning journalist, she holds a master's degree from UC Berkeley and is a native of Santa Barbara County, Yardi's home.

Recent articles

multifamily guide to YASC 2026

Your Multifamily guide to YASC 2026

Find the right YASC sessions, get answers to your biggest AI questions in your Yardi stack and leave with practical ways to save time across your business.

AI in real estate

AI in real estate: Why data readiness comes before the pilot

Data readiness for AI in real estate has no finish line. Shivani Kumar explains what governance needs to cover, who should own it and where investment managers are seeing returns.

Collage of Lisa Furbush

Seeing compliance from every angle with Lisa Furbush

Meet Lisa Furbush, Yardi industry principal and affordable housing compliance expert. She's seen the industry from a diverse set of professional roles.