3Q24 | Self-Storage Market Report | Southeast
Southeast Self-Storage Market Report
Market Overview
Southeast Self-Storage By the Numbers
- Total Sales Volume: $793.6M
- Average Price Per Square Foot: $116
- Average Cap Rate: 6.0%
This Year Through Q2 2024 | Source: RCA
- Construction Underway: 18,764,978 SF
- Completed Developments: 9,327,069 SF
By Square Feet, 4 quarters through Q2 2024 | Source: RCA
Market Performance
Advertised rental rates continue to fall nationally. Advertised rates dropped by 4.3% year-over-year nationally in August 2024, marking the 23rd consecutive month of monthly declines. REITs have led street rate decreases, with rents at properties managed by REITs down 5.4% annually compared to non-REITs with decreases of 4.0% nationwide.
Year-over-year, markets with higher saturation are seeing the biggest decrease in rents. Specifically, Atlanta has seen a large amount of supply, as new additions delivered during the last three years totaled 12.4% of existing inventory. With the strong influx of developments, self-storage properties here noted weak performance, together with advertised rates dropping 10.0% year-over-year. The metro has added over 1.1 million square feet of construction so far this year, adding more challenges for the metro’s self-storage facilities moving forward.
Three other Southeast markets—Orlando, Tampa, and Charlotte—are also seeing a similar pattern. All three have noted between 11% to 13% of existing inventory being delivered in the past three years. Rents in these markets are down 4% to 6% year-over-year, according to Yardi.
So far this year, private investors account for the highest levels of transaction volume. These private investors have made up 69.2% of trades, with institutional investors trailing behind at 26.3%. This is a change from 2023, when institutional investors notched the most transactions at 51.5%. Florida accounts for the most sales in the Southeast during the last 12 months, with $573 million in total.
