Self Storage Services NAICS 531130

Jun 23, 2026 - Self-Storage REIT Market Stabilizing

• Self-storage REITs are showing signs of improvement after several quarters of market normalization, according to a report by valuation and advisory firm Capright. However, pricing pressure, soft revenue growth, and rising expenses continue to weigh on performance. Average occupancy among major self-storage REITs held at 89.9% in the fourth quarter of 2025, while same-store revenue rose 0.1%, same-store net operating income fell 1.2%, and rental rates declined 0.8% year over year. Capright said operators are relying more on existing customer rate increases as street rates remain compressed, widening the gap between move-in pricing and in-place rents. Sunbelt markets continue to face oversupply and concessions, while supply-constrained gateway markets are stabilizing faster. Institutional interest remains active, but Capright said disciplined operations, technology-driven revenue management, and realistic underwriting will be critical.
• The average metro rate for medium (10x10 & 10x15) climate-controlled self-storage units decreased by 1.8% year-over-year in April 2026, according to Yardi Matrix. Average metro rates for medium (10x10 & 10x15) non-climate-controlled units dropped 1.9% year-over-year. Average annualized same-store street rates – storage rent rates quoted to new customers – for non-climate-controlled units fell 2% in April compared to a year earlier, while street rates for climate-controlled units declined by 1.9%. Self-storage REITs continue to see steeper declines in asking rents than private operators. REIT asking rents declined 3.6% in April, marking the third consecutive month that asking rents trailed those of independent operators. Overall, self-storage occupancy remains stable despite weak demand amid a sluggish housing market.

• Sales of existing US homes increased by 3.2% in May 2026 from April and were up 3.2% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy. Improving affordability is helping drive this momentum. Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average. Income gains are also outpacing home price growth by a small margin in most parts of the country." Home sales help drive self-storage demand, as households often rent storage space before or after buying or selling a home.
• Several top US-based self-storage real estate investment trusts (REITs) saw market conditions improve in the first quarter of 2026 amid moderating supply, although rising costs remain a challenge. CubeSmart’s same-store net operating income (NOI) fell 1.5% year over year in Q1 2026, and occupancy dropped to 89.3% from Q1 2025’s 89.6%. Extra Space Storage’s same-store NOI increased 1.2% from the first quarter of 2025, and occupancy slipped to 93% from 93.2% over the same period. Public Storage’s same-store NOI increased 0.4%, and occupancy fell 1.1% to 93.4% compared to Q1 2025. National Storage Affiliates Trust’s NOI rose 2% Q1 2026, and occupancy rose to 84.2% from 84.1% in Q1 2025.