The self-storage industry had a challenging 2024 marked by significant rises in discounting (web rates vs street rates), dramatic same-store property tax increases, and widespread difficulties understanding the reality on the ground.
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.
KEY FACTS:
- 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
