Self-Storage Developers Cut Rents to Compete

“Heavy new supply deliveries and slowing economic fundamentals are adding headwinds to street rates,” according to the “National Self Storage Report” for July 2018 from Yardi Matrix.

The number of new properties opening is expected to peak later this year. However, in the meantime, average occupancy rates for self-storage properties remain high. Even in metro areas that are overbuilt overall, individual submarkets are often very healthy and almost unaffected by competition from properties more than a few miles away. In most cases, if owners of new properties are willing to offer discounted rents, they have been able to complete lease-ups within the usual timeframe.