State of Self-Storage 2025-2026

Rental rate declines reversed in 2025, with positive year-over-year growth returning in the second half of the year. While absolute gains remain modest, sequential improvement indicates a new pricing equilibrium.

• —National rental rates reached roughly flat to modestly positive YoY growth by late 2025, with advertised street rents registering approximately +0.3% to +0.8% YoY in various months during H2 2025.
• —Public Storage reported resumption of positive new-customer rate trends in mid-2025; management commentary references a return to low-single-digit positive growth after prior declines.
• —Extra Space Storage improved move-in rate performance from materially negative in 2024 toward flat by early-to-mid 2025; by Q3 2025 the pricing environment was described as "constructive," with move-in rate trends stabilizing versus 2024 declines.

Occupancy levels plateaued in 2025, remaining above pre-pandemic norms even as move-ins and move-outs stayed elevated.

• —Q3 2025 occupancy ranged from approximately 84.5% to 93.7% among major REITs, with Extra Space at 93.7% quarter-end, CubeSmart averaging 89.9%, and National Storage Affiliates at 84.5% period-end; Public Storage generally described in the low-to-mid-90s range.
• —Sector reports note occupancy remained stable in Q3 2025 despite competitive demand and elevated churn, with some REITs reporting small year-over-year declines but sequential stabilization.

Transaction activity rebounded meaningfully in 2025 as buyers adjusted to higher cap rates and stabilized fundamentals.

• —$5.9B in transaction volume through November 21, 2025, exceeding total 2024 volume.
• —Deal volume improved materially in early 2025 versus 2024, with one national sales tracker reporting $855M in Q1 2025 self-storage sales, a 37% increase year-over-year.
• —Average cap rates reached 7.4% in Q2 2025, with primary markets trading as low as 5.0%–5.75%.

New development is declining sharply from pandemic-era peaks, with deliveries projected to fall below historical averages by 2027.

• —Annual deliveries peaked in the early 2020s and are now equivalent to roughly 2.8%–3.0% of existing inventory (down from a three-year cumulative addition of more than 9% of stock) forecast to moderate further to approximately 2.0% by 2027 and roughly 1.5% by 2029–2030.

Technology adoption has lowered barriers to entry while raising customer expectations, reshaping competitive dynamics across the industry.

• —Operators increasingly prioritize smart security and access control systems, along with integrated digital tools (online rentals, mobile apps, remote management) as core 2025–2026 investment themes, reflecting a shift from "nice to have" to foundational infrastructure.