Phoenix, September 25, 2025
News Summary
The self-storage market shows mixed trends in rates and construction activity. Advertised street rates have risen slightly year-over-year, while construction continues across 3,004 properties. Despite some regional successes in rate increases, many areas are experiencing a decline in rent growth. Key cities such as Phoenix and Tampa are leading in construction activity, highlighting a complex landscape in the self-storage industry.
Self-Storage Market Experiences Mixed Trends in Rates and Construction Activity
The latest analysis of the self-storage industry indicates a blend of rising rates and slowing construction activity across the country, as detailed in the recent Yardi Matrix report. Overall, the advertised street rate for self-storage has seen a 0.3 percent increase year-over-year, underscoring ongoing demand in this sector.
The national average rent per square foot has reached $16.91, signifying a steady growth in pricing trends. In the past year, 16 of the top 30 metros witnessed an increase in advertised rates for non-climate-controlled units, while 20 of these metros</b experienced similar improvements for climate-controlled units compared to data from August 2024.
Despite these growth patterns, a more comprehensive view reveals that the monthly average advertised street rates for a combined 10×10 non-climate and climate-controlled units fell by 0.2 percent. Alarmingly, 20 of the top 30 metros reported negative movements in advertised asking rent growth. Nevertheless, several cities, including Raleigh-Durham, Austin, Washington D.C., San Diego, Miami, Boston, Orlando, Charlotte, and Atlanta, have shown significant increases in their advertised rates, whereas Philadelphia remained flat.
As of August, the development landscape of self-storage reflects a robust pipeline, with 3,004 self-storage properties in various stages of development nationwide. This includes 716 properties currently under construction, 1,906 planned, and 382 prospective properties. Properties under construction comprise 2.7 percent of total stock, evidencing a slight 10-basis-point decrease from the previous month. The total net rentable square footage under construction is reported at 53.6 million square feet, translating to 2.7 percent of existing inventory, which is also down by 0.1 percent month-over-month.
Fewer than half of the top 30 metros are exhibiting under-construction pipelines that remain below the national average. Regions such as the Mid-Atlantic and Southeastern U.S. are notably less active in this regard. Specifically, San Jose and San Francisco have recorded the lowest levels of under-construction stock at 0.5 percent and 0.3 percent, respectively.
Interestingly, just four metros have seen an increase in under-construction supply month-over-month: Tampa (70-basis-point increase), New York (20 bps), Washington D.C. (30 bps), and Minneapolis (90 bps). Leading in construction activity, Phoenix holds the highest level of under-construction supply, accounting for 6.1 percent of existing stock, which remained unchanged from the previous month. Other notable metros with considerable construction activity include Las Vegas (5.7 percent), Charleston, SC (5.4 percent), and Orlando (5.4 percent).
Key Takeaways
The combination of rising rates and fluctuating construction indicates a dynamic environment in the self-storage market. Stakeholders should monitor these trends closely to adapt and respond effectively to ongoing market demands.
FAQ
What is the overall change in advertised self-storage rates as of now?
The overall advertised street rate for self-storage rose by 0.3 percent year-over-year.
What is the annual average rent per square foot for self-storage?
The annualized average rent per square foot stands at $16.91 per the Yardi Matrix national self-storage report.
How many self-storage properties are currently under construction?
As of August, there were 716 properties under construction nationwide.
What is the current rent growth trend across top metros?
Out of the 30 metros tracked, 20 reported negative movements in advertised asking rent growth.
Key Features Table
| Feature | Details |
|---|---|
| Overall Rate Change | 0.3% increase year-over-year |
| Average Rent per Square Foot | $16.91 |
| Properties Under Construction | 716 |
| Total Development Pipeline | 3,004 properties |
| Negative Rent Growth | 20 out of 30 metros |
Deeper Dive: News & Info About This Topic
Additional Resources
- Multihousing News: Self-Storage National Report – September 2025
- Wikipedia: Self-storage
- Inside Self Storage: 10 Federal Releases 2024 Financial Results
- Google Search: self-storage market
- PR Newswire: 10 Federal Adds 27 Properties in 2024
- Encyclopedia Britannica: self-storage
- JLL: 8-Property Self-Storage Portfolio Sells
- Google News: self-storage industry news
Author: Construction CA News
CALIFORNIA STAFF WRITER The CALIFORNIA STAFF WRITER represents the experienced team at constructioncanews.com, your go-to source for actionable local news and information in California and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rose Parade, Coachella, Comic-Con, and the California State Fair. Our coverage extends to key organizations like the California Building Industry Association and Associated General Contractors of California, plus leading businesses in technology and entertainment that power the local economy such as Apple and Alphabet. As part of the broader network, including constructionnynews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic landscape across multiple states.
