By Yardi Matrix
Q4 2024 self storage REIT results reflect ongoing challenges, with revenue growth slowing each quarter, ending the year down 1%. This was driven by a 0.5% drop in occupancy and rates. While markets in the Northeast, Midwest and West show signs of stabilization, Sun Belt regions struggle with weak home sales and oversupply. The 2025 revenue growth forecast midpoint averages -0.3%, with some improvement in advertised rent growth already occurring. NOI growth for 2024 averaged -2.2% due to rising expenses, a trend expected to continue.
Occupancy is likely to remain flat, with potential growth driven by higher rents in the second half of the year and declining new supply. The transaction market should continue last year’s momentum, with estimated sales volume up 50% year-over-year in the second half of 2024, as a number of well-capitalized private owners and operators have remained very active.
Advertised rates continue to improve year-over-year in many top metrosÂ
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While advertised rates continue to drop year-over-year on a national level, they are declining at a slower rate than in the previous 27 months. National advertised rates were down 0.8% year-over-year in February, with an annualized average per square foot of $16.42 for the combined mix of unit sizes and types. This is an improvement from -1.1% in January and -2.2% in December.Â
â– A significant portion of the top metros actually saw advertised rates increase year-over-year in February. Same-store rates for non-climate-controlled (NCC) units increased in 11 of the top 30 metros. For climate-controlled (CC) units, rates have risen in 14 of the top 30 metros compared to a year ago.Â
â– Nationally, Yardi Matrix tracks a total of 3,153 self storage properties in various stages of development, including 740 under construction, 1,989 planned and 424 prospective properties. The share of projects (net rentable square feet) under construction nationwide was equivalent to 2.9% of existing stock through the end of February, a 10-basis-point decrease from the month prior.Â
â– Yardi Matrix also maintains operational profiles for 30,003 completed self storage facilities in the U.S., bringing the total dataset to 33,156. We are happy to announce the release of our new Medford, Ore., and Green Bay, Wis., storage markets, which are now available to Yardi Matrix customers on the subscriber portal.
