Street rates remained negative on an annual basis, but experts foresee an improvement in the sector in 2024. As of December, the overall national street rate per square foot fell to $16.57, a 2.7 percent decline compared to the nationwide average recorded in December 2022. Annually, street rates for the 10×10 non-climate-controlled and climate-controlled units declined in all but one of the 31 metros tracked by Yardi Matrix, as New York registered a 0.8 percent increase for 10×10 NCC units and an uptick of 0.2 percent for 10×10 CC units.
On a monthly basis, the average street rates per square foot for the 10×10 non-climate-controlled and climate-controlled units combined were down 0.1 percent, to $16.57. Out of the 31 top metros tracked by Yardi Matrix, 19 saw an improvement as they registered a positive monthly rate growth.
Stable construction pipeline
As of December, nationwide, there were 5,073 self storage projects in all stages of development. The new-supply pipeline included 1,890 planned projects, 1,510 abandoned facilities, 871 under construction, 621 prospective and 91 deferred ones. The under-construction projects made up 3.8 percent of the total inventory, a 10-basis point decrease month-over-month.
Orlando is still leading in terms of new supply in metros tracked by Yardi Matrix, despite a 0.3 percent drop monthly. The Inland Empire saw the largest increase in construction activity, up 40 basis points to 1.7 percent.
Read the full Yardi Matrix national storage report here.
