Street rates improve nationwide, with just 12 markets experiencing negative rate performance year-over-year for non-climate-controlled units
SANTA BARBARA, Calif., Feb. 17, 2021 – Self storage continues to be a standout sector as real estate struggles with the fallout of the year-long pandemic. According to the latest Yardi® Matrix National Self Storage Monthly report, street rates in almost all markets saw significant improvements across in January.
National street rates for 10×10 non-climate-controlled (NON CC) units increased by 3.5% compared to January 2020, and rates nationwide for 10×10 climate-controlled (CC) units grew by 2.3% year-over-year. While the annual growth was significant, rates for 10×10 NON CC and CC units remained unchanged on a monthly basis.
Annual street rate performance was positive in about 87% of the top markets tracked by Yardi Matrix for 10×10 NON CC units in December. Year-over-year, only one top market saw negative rate performance for this unit type, while rates remained flat in three of the top markets.
“Development activity also remains stable nationally, with completions still forecast to slow down. These strong fundamentals are helping maintain a positive outlook for the self storage industry as we move into a new year,” stated Matrix analysts. Find the full National Self Storage Monthly report insights.
Nationwide, Yardi Matrix tracks a total of 2,154 self storage properties in various stages of development—comprising 591 under construction, 1,157 planned and 406 prospective properties. The national new-supply pipeline as a percent of existing inventory increased by a minor 0.1% month-over-month in January, and the share of existing properties in various stages of development accounts for 8.3% of existing inventory. Matrix also maintains operational profiles for 26,465 completed self storage facilities across the United States, bringing the total data set to 28,619.
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.