Demand and occupancy levels remain healthy as street rates moderate
SANTA BARBARA, Calif., Dec. 15, 2021 – Due to seasonal considerations, the self storage industry saw street rates decline slightly for the third straight month in November, according to the latest Yardi® Matrix report.
However, long-term demand and high occupancy levels indicate that self storage is well positioned heading into 2022 and beyond.
National street rates for 10×10 non-climate-controlled (NON CC) units declined to 6.7 percent growth in November, a drop of almost two percentage points from the previous month, while rates for similar-size climate-controlled (CC) units fell to 8.2 percent growth.
“The deceleration is not surprising, and street rates remain solid by historical standards,” say Matrix analysts. “Sources of long-term demand include households downsizing and moving, those that are storing large items, and people that are working or operating businesses from home and need to declutter to create space to work.”
No metros in the top markets tracked by Yardi Matrix saw negative street rate growth for standard-size 10×10 NON CC and 10×10 CC units. Rent growth was 5 percent or more in 24 of the top 30 markets for NON CC units and 22 of the top 30 metros for CC units.
Yardi Matrix tracks a total of 2,943 self storage properties nationwide in various stages of development — including 719 under construction, 1,252 planned and 476 prospective properties. Matrix also maintains operational profiles for 27,206 completed self storage facilities across the United States, bringing the total data set to 30,926.
Learn more about the state of the self storage sector nationwide.
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.