Self Storage Services NAICS 531130

Dec 20, 2025 - New Report Highlights Industry Opportunities, Challenges in 2026

• Storable’s “2026 Self-Storage Industry Outlook” report, based on a survey of 454 U.S. facility operators, highlights rising competition from new entrants as the top concern, driven by technology that lowers barriers while raising customer expectations. Two-thirds of operators remain optimistic about their business prospects, although concerns about economic headwinds, rising costs, and consumer strain persist. Many expect rates to stabilize, signaling confidence in demand, while efficiency and retention are top priorities. The report shows 78% plan to compete on customer service, followed by pricing, with automation seen as a way to offset costs and enhance high-value interactions. Customer acquisition is the leading priority for 75% of respondents, yet also their greatest challenge. Operators are investing in smart security, upgraded communication, and AI-driven tools, with success expected for those who combine operational expertise, technology, and customer relationships.
• Self-storage operators face a lingering imbalance between supply and demand, which is hindering more robust rent growth, according to Yardi Matrix. New self-storage facilities continue to come online, which increases supply at a time when demand is waning due to a sluggish housing market, uneven consumer spending, and mounting economic uncertainty. Advertised rates for new customers, also known as street rates, increased in November; however, there was a divergence between REITs and non-REIT operators. National advertised rates increased by 0.6% in November compared to the same period a year earlier. November rate growth was led by aggressive pricing strategies by self-storage REITs, as same-store advertised rates grew by 2.0% to 2.2% year-over-year. However, non-REIT operators saw same-store advertised rates drop 0.1% over the same period. The average metro rate for medium (10x10 & 10x15) climate-controlled self-storage units increased by 1.3% year-over-year in November 2025, according to Yardi Matrix. Average metro rates for medium (10x10 & 10x15) non-climate-controlled units rose 0.5% year-over-year.

• US supply of net rentable square feet (NRSF) of self-storage space is expected to rise this year and next, putting downward pressure on rent growth, according to a Q4 2025 forecast by Yardi Matrix. NRSF in the self-storage industry is expected to rise 4.3% in 2025 and another 4.6% in 2026 amid an unexpectedly high influx of new construction. However, new construction is lagging 2024 levels and is down 21% from the peak seen in 2023. While Yardi forecasts that self-storage construction activity will slow after 2026, national advertised rental rates in September saw year-over-year growth for the first time in three years, which could attract investments in new space. Between 2027 and 2030, self-storage NRSF growth is forecast to be essentially flat, which could spur rent growth and occupancy for existing facilities.
• Several top US-based self-storage real estate investment trusts (REITs) saw net operating income soften in the third quarter of 2025, but occupancies stabilized. CubeSmart’s same-store net operating income (NOI) fell 1.5% year over year in Q3 2025, and occupancy dropped to 89.9% from Q3 2024’s 90.8%. Extra Space Storage’s same-store NOI was down 2.5% from the third quarter of 2024 but occupancy rose to 93.7% from 93.6% over the same period. Public Storage’s same-store NOI increased 0.1%, and occupancy fell from 92.7% in Q3 2024 to 92.2%. National Storage Affiliates Trust’s NOI dropped 5.7% in Q3 2025, and occupancy fell to 85% from 86.5% in Q3 2024.