It’s peak leasing season for self-storage items, however move-in rents within the second quarter continued to slide by double digits whereas demand stays sluggish in a lot of the nation. It’s a pattern that Inexperienced Road’s Self-Storage Hire Tracker expects will proceed for the remainder of 2023, with declines year-over-year within the low single-digit vary.
Nevertheless, whereas asking rents are down year-over-year, nominal rents have improved since January 2023. This has enabled REITs to enhance their pricing energy in keeping with typical seasonal traits, although the rise is lower than regular. Income progress additionally depends upon modifications in occupancy (down from all-time highs) and hire charged to current prospects (above historic norms at round 15% a yr).
