Yardi Matrix Shows Supply Bogging Down U.S. Self Storage Street Rates

High levels of recent deliveries could spark cost reductions and
efficiency measures

SANTA BARBARA, Calif.,
Sept. 24, 2019 – New
deliveries, plus conversions and expansions, continue to chill street rate
growth in nearly all U.S. self storage markets, according to a new report from Yardi®
Matrix.

The report
documents a 1.7% year-over-year national street rate contraction in September
for standard 10×10 non-climate controlled units, with rates for similar-size
climate-controlled units falling 2.9%. Street rates decreased in about 75% of
the top 31 metros tracked by Yardi Matrix, with Charleston, S.C., experiencing
the steepest decline, 11.3%. Only two of the top metros—Las Vegas and
California’s Inland Empire, both of which are experiencing strong population
gains and domestic in-migration—boasted year-over-year street rate growth.

With deliveries
expected to remain elevated and increase pricing pressures, store owners and
operators are seeking to “increase efficiency and reduce operating costs in
order to drive performance,” says the report, which compiles data from more than 27,000 U.S.
self storage projects that are completed or in various stages of development.

More information
about development activity, street rates and individual metros, including Charleston,
Seattle, Nashville, Tenn., and Miami, is available in the national
self storage report for September 2019.

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, 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.