Self-storage operations are facing challenges today, including unclear pricing, difficulty obtaining financing and a "race to the bottom" on street rates, particularly among the public companies, according to a new report from Yardi.
Street rate growth also continued to be negative year-over-year in all top metros. The average annualized same store asking rent per square foot dropped by 4.5% and by 3.8% since last month. REITs have pushed rates down twice as much as their non-REIT competitors to attract new customers.
"Smaller operators are also being forced to lower their rates to avoid occupancy declines but are later to the game," according to Yardi Matrix.
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