Self Storage Rents Show Signs of Recovery
While street-rate rents were down 0.9 percent on a year-over-year basis, the rate actually indicates an 80 basis-point improvement compared to the previous month’s decrease of 1.7 percent.
February 24, 2020 | Evelyn Jozsa | Commercial Property Executive
New completions continued to negatively impact self storage rents in January. Year-over-year, street-rate rents dropped 0.9 percent for the average 10×10 non-climate-controlled and 2.3 percent for climate-controlled units of similar size. Nonetheless, as the markets started to gradually absorb newly delivered supply, the slide of street-rate rents actually slowed down by 80 and 70 basis points compared to the previous month, when rent rates decreased by 1.7 and 3 percent.
Listed rates took a step down in more than half of the top markets tracked by Yardi Matrix. Despite their low inventory, the largest declines were registered in Pittsburgh (down 7.4 percent) and Minneapolis (down 7.3 percent). The existing storage space available per capita is below the national average in both metros, at 4.7 and 5.7 net rentable square feet. By contrast, Western metros continued to perform well in terms of rent growth. In Las Vegas, street rates for the standard non-climate-controlled units have risen by 1.9 percent year-over-year.
