The annual street rate growth in the self-storage real estate sector remained negative in February, according to new data report from Yardi Matrix.
Last month, the average annualized same-store asking rent per square foot for combined mix of unit sizes reached an average of $16.37 nationally last month, down 3.6% year-over-year. Negative street rates on annual basis were recorded in all the major markets, with same-store rates for both non-climate-controlled units and climate-controlled units recording a nationwide decline.
The data report noted that while investors remain cautious on this sector, there is still interest in future developments. Yardi Matrix tracks a total of 5,148 self-storage properties in various stages of development, including 880 under construction, 2,031 planned, 592 prospective, 1,546 abandoned and 99 deferred properties.
“There is hope that a turnaround in the housing market later this year or early 2025, contingent on interest rates cuts, could unlock pent-up demand for housing and migration, thus fueling demand for self-storage,” said the Yardi Matrix data analysis.
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