A Challenging 2024 for Self-Storage Operators
2024 put self-storage operators to the test. Street and web rates were heavily discounted, property taxes surged, and operators struggled to reconcile headline prices with achieved rents and existing-customer rate increases. This report uses TractIQ data and REIT filings to cut through the noise so you can underwrite and operate with confidence.
Key Takeaways From Q4 2024
A few numbers tell the story of just how unusual 2024 was for storage REITs:
- REIT advertised rates decreased by 18.4%, and rent per occupied SF decreased by 2.3% since 4Q23
- REIT advertised rates were 14.1% lower than REIT achieved rates
- The REIT discount rate (% difference between street and web rates) was 41.1% in 4Q24. This figure was 43.4% 1 year ago and 26.4% 2 years ago
- On average, REIT same-store portfolios experienced a 14.3% increase in property taxes year-over-year
- 2024 REIT Street Rate Trends (10×10 NCC) – Top 3 and Bottom 3 MSAs
- Las Vegas, NV: 13.9% decrease
- Austin, TX: 11.6% decrease
- Louisville, KY: 11.0% decrease
- Tampa, FL: 20.6% increase
- San Francisco, CA: 12.7% increase
- St. Louis, MO: 11.7% increase
