Self Storage Market Indicators Show Positive Signs in June, Yardi Matrix Reports

While street rates continued to edge negative, new
development strength and a slowdown in speed of decline prompt optimism

SANTA BARBARA, Calif.,
July 20, 2020 – As national
lockdown restrictions continued to ease in June and many Americans put moving
plans into motion, the bad news and street rate declines slowed down for the
self storage industry in June 2020, according to the latest National Self Storage report from industry real estate data leader Yardi®
Matrix. New development in the sector also remained solid.

“Despite the
continued impact of COVID-19 on the self storage industry, the downward trend
in annual street rate performance did not accelerate as drastically compared to
previous months,” the report summarizes.

On a
year-over-year basis, national street rates contracted by 4.3% for 10×10
non-climate-controlled (NON CC) units in June, while rates for 10×10
climate-controlled (CC) units decreased by 6.7% compared to June 2019.

Annual street
rate performance was negative in all of the top markets tracked by Yardi Matrix
for 10×10 NON CC units. Minneapolis continues to lead the way in annual street
rate reductions, with rates contracting by double digits for both unit
categories year-over-year.

Nationwide, Yardi
Matrix tracks a total of 2,181 self storage properties in various stages of
development—comprising 601 under construction, 1,158 planned and 422
prospective properties. The national new-supply pipeline as a percent of
existing inventory increased by a slight 0.1% month-over-month in June, and the
share of existing properties in various stages of development accounts for 8.9%
of existing inventory. Matrix also maintains operational profiles for 26,034
completed self storage facilities across the United States, bringing the total
data set to 28,215.

Gain detailed
insights into this resilient market in the new self storage national report.

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.