2025 Q2 REIT REPORT

In this report, we leverage TractIQ’s data since 2018 combined with public filings to identify interesting trends that you can incorporate in your underwriting and operational efforts.

To summarize, below are major highlights from the second quarter of 2025: 

• REIT advertised rates were $20.36 in 2Q25 (up 1.7% YOY) compared to $17.99 in 1Q25 (down 5.5% YOY). With REIT YOY street rate growth in positive territory, this suggests pricing power is returning to the industry.
• REIT achieved rates were $20.71 in 2Q25 (down 3.1% YOY) compared to $20.74 in 1Q25 (down 3.1% YOY). This may illustrate further churn of the pandemic-era tenants who were paying higher in-place rents as well as the last 2-3 years of depressed move-in rates. 
• REIT street rates were below REIT achieved rates by 1.7% in 2Q25 (a 73.6% decrease YOY from 6.3%) compared to 13.3% in 1Q25 (a 19.9% decrease YOY from 11.1%). This data shows what a unique time we may be in for underwriting deals. Currently, street rates are more useful in predicting achieved rates since the spread between the two is so narrow (especially for Extra Space and NSA).
• The REIT discount rate (% difference between street and web rates) was 23.7% in 2Q25 (up 13.8% YOY) compared to 23.6% in 1Q25 (up 37.2% YOY). Discounting has remained steady, suggesting continued heightened competition and muted demand in the marketplace.

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