Self-Storage REIT Highlights
CubeSmart
- CubeSmart saw a 9.8% drop in asking rental rates by the end of June 2024, reflecting the competitive pressures in the market.
- Occupancy decreased by 70 basis points year-over-year, ending Q2 at 91.9% on its same-store pool, reflecting challenges in maintaining occupancy amidst declining rates.
- Continued to focus on growth through its third-party management platform, adding 39 stores and opening two new projects in New York with a total investment of $61.8 million.
Extra Space Storage
- Extra Space reported a 12% improvement in average move-in rates; however, this was still 8% below the previous year’s average, highlighting the pressure on rental pricing.
- Experienced a 20 basis point decline in same-store occupancy year-over-year, finishing the quarter at 94.3%, indicating resilience but also pressure from market conditions.
- Faced a 6% increase in same-store expenses, which, combined with pressures on rental rates, has impacted overall income growth.
National Storage Affiliates
- NSA faced pricing challenges, particularly in oversupplied markets, leading to heightened price sensitivity among new customers, but managed a modest 2.6% increase in same-store achieved rates year-over-year.
- Saw a 3% decline in same-store occupancy year-over-year, with the company noting a shift in peak occupancy seasons to earlier in the year, signaling changing market dynamics.
- NSA’s investment activity was cautious, focusing more on internal growth and redevelopment rather than external acquisitions, largely due to the wide bid-ask spread in the market.
Public Storage
- Public Storage experienced a significant 14% decline in move-in rental rates compared to the previous year, prompting the company to revise its revenue guidance downward.
- Despite pressures on rental rates, Public Storage achieved a positive net move-in trend, narrowing its same-store occupancy gap by 50 basis points and ending Q2 with strong performance in its non-same-store pool, which reached 83% occupancy.
- Public Storage reported a 1.1% decline in same-store rental revenue and a 2% drop in NOI due to a 90 basis point increase in operating costs, yet it maintained a strong operating margin at 79%.
Macroeconomic Highlights
Q2 2024 Self-Storage REIT Data Overview
| Same Store Ending Occupancy | Same Store YoY Rental Income Increase | Same Store YoY Expense Increase | Same Store YoY NOI Increase | Same Store Achieved Rate | Q2 Acquisitions | ||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | % Change | 2024 | 2023 | |
| CUBE | 91.90% | 92.60% | -0.30% | 4.10% | 4.20% | 3.60% | -1.20% | 5.00% | $23.40 | $23.12 | 1.2% | 0 | 0 |
| EXR | 94.30% | 94.50% | 0.70% | 2.40% | 6.00% | 3.00% | -1.10% | 2.60% | $21.63 | $22.62 | -4.4% | 3 | 3 |
| NSA | 87.00% | 90.00% | -2.83% | 2.47% | 4.80% | 1.40% | -5.60% | 3.40% | $15.66 | $15.27 | 2.6% | 3 | 2 |
| PSA | 92.70% | 93.20% | -1.10% | 6.00% | 2.60% | 6.70% | -2.00% | 6.20% | $22.72 | $23.34 | -2.7% | 2 | 11 |
Q2 2024 Self-Storage Operating Fundamentals
Self-Storage Rental Rates
Self-Storage Occupancy
Self-Storage Income & Expenses
Self-Storage Investment & Transaction Activity
Self-Storage Cap Rates & Bid-Ask Spread
Headwinds in the Self-Storage Market
Tailwinds in the Self-Storage Market
Q2 2024 Self-Storage REIT Data by MSA
| Average Occupancy Same Store | Achieved Rate Same Store | |||||||||||
| EXR | CUBE | PSA | NSA | Average | EXR | CUBE | PSA | NSA | Average | |||
| Atlanta, GA | 89.10% | 93.60% | 82.40% | 88.20% | 88.33% | Atlanta, GA | $16.82 | $17.91 | $13.93 | $17.50 | $16.54 | |
| Austin, TX | 89.90% | 93.30% | 84.80% | - | 89.33% | Austin, TX | $18.14 | $18.00 | $16.85 | - | $17.66 | |
| Baltimore, MD | 93.60% | - | - | 93.90% | 93.75% | Baltimore, MD | $22.44 | - | - | $23.11 | $22.78 | |
| Boston, MA | 90.50% | 95.20% | - | - | 92.85% | Boston, MA | $25.56 | $27.73 | - | - | $26.65 | |
| Bridgeport, CT | 91.10% | - | - | - | 91.10% | Bridgeport, CT | $29.45 | - | - | - | $29.45 | |
| Brownsville, TX | - | - | 89.20% | - | 89.20% | Brownsville, TX | - | - | $13.20 | - | $13.20 | |
| Charleston, SC | 90.80% | 95.60% | - | - | 93.20% | Charleston, SC | $16.65 | $17.70 | - | - | $17.18 | |
| Charlotte, NC | 90.90% | - | - | 92.10% | 91.50% | Charlotte, NC | $18.05 | - | - | $15.99 | $17.02 | |
| Chicago, IL | 92.50% | 93.40% | - | 93.60% | 93.17% | Chicago, IL | $19.07 | $20.31 | - | $20.44 | $19.94 | |
| Cincinnati, OH | - | 94.30% | - | - | 94.30% | Cincinnati, OH | - | $13.81 | - | - | $13.81 | |
| Cleveland, OH | 88.60% | - | - | - | 88.60% | Cleveland, OH | $17.28 | - | - | - | $17.28 | |
| Colorado Springs, CO | - | - | 87.30% | - | 87.30% | Colorado Springs, CO | - | - | $13.45 | - | $13.45 | |
| Columbus, OH | 92.50% | 92.50% | - | - | 92.50% | Columbus, OH | $13.78 | $12.39 | - | - | $13.09 | |
| Dallas, TX | 93.20% | 95.00% | 84.20% | 90.20% | 90.65% | Dallas, TX | $17.88 | $18.02 | $14.13 | $18.21 | $17.06 | |
| DC | 92.70% | 95.10% | - | 93.60% | 93.80% | DC | $25.95 | $24.01 | - | $26.70 | $25.55 | |
| Denver, CO | 93.20% | 94.20% | - | - | 93.70% | Denver, CO | $18.37 | $18.52 | - | - | $18.45 | |
| Ft Myers, FL | 86.50% | - | - | - | 86.50% | Ft Myers, FL | $21.28 | - | - | - | $21.28 | |
| Hawaii, HI | - | 94.10% | - | - | 94.10% | Hawaii, HI | - | $45.10 | - | - | $45.10 | |
| Hartford, CT | 90.20% | - | - | - | 90.20% | Hartford, CT | $17.88 | - | - | - | $17.88 | |
| Houston, TX | 93.10% | 93.60% | 88.20% | 91.80% | 91.68% | Houston, TX | $17.17 | $16.92 | $12.77 | $16.88 | $15.94 | |
| Indianapolis. IN | - | 92.00% | - | - | 92.00% | Indianapolis. IN | - | $11.94 | - | - | $11.94 | |
| Jacksonville, FL | 92.80% | - | - | - | 92.80% | Jacksonville, FL | $20.58 | - | - | - | $20.58 | |
| Las Vegas, NV | 91.60% | 93.80% | 87.10% | - | 90.83% | Las Vegas, NV | $18.76 | $17.43 | $14.57 | - | $16.92 | |
| Los Angeles, CA | 92.20% | 94.30% | 87.10% | 95.10% | 92.18% | Los Angeles, CA | $27.30 | $30.06 | $24.67 | $35.96 | $29.50 | |
| Louisville, KY | - | 90.10% | - | - | 90.10% | Louisville, KY | - | $11.75 | - | - | $11.75 | |
| Memphis, TN | - | 93.10% | - | - | 93.10% | Memphis, TN | - | $12.32 | - | - | $12.32 | |
| McAllen, TX | - | - | 90.40% | - | 90.40% | McAllen, TX | - | - | $13.49 | - | $13.49 | |
| Miami, FL | 93.00% | 94.10% | - | 93.40% | 93.50% | Miami, FL | $25.21 | $27.83 | - | $29.98 | $27.67 | |
| Nashville, TN | 92.10% | - | - | - | 92.10% | Nashville, TN | $16.14 | - | - | - | $16.14 | |
| New Orleans, LA | - | - | 82.20% | - | 82.20% | New Orleans, LA | - | - | $15.56 | - | $15.56 | |
| New York | 91.40% | 94.10% | - | 93.80% | 93.10% | New York | $36.98 | $29.75 | - | $32.19 | $32.97 | |
| Norfolk, VA | - | 94.50% | - | - | 94.50% | Norfolk, VA | - | $18.31 | - | - | $18.31 | |
| OKC, OK | - | - | 87.60% | - | 87.60% | OKC, OK | - | - | $10.89 | - | $10.89 | |
| Orlando, FL | 91.70% | 93.50% | - | 91.90% | 92.37% | Orlando, FL | $16.99 | $17.42 | - | $18.81 | $17.74 | |
| Philadelphia, PA | 91.70% | 93.10% | - | 93.50% | 92.77% | Philadelphia, PA | $20.90 | $20.82 | - | $21.00 | $20.91 | |
| Phoenix, AZ | 90.80% | 94.10% | 84.00% | - | 89.63% | Phoenix, AZ | $16.76 | $17.36 | $16.22 | - | $16.78 | |
| Portland. OR | - | 95.70% | 89.20% | - | 92.45% | Portland. OR | - | $19.67 | $18.68 | - | $19.18 | |
| Providence, RI | 91.30% | - | - | - | 91.30% | Providence, RI | $20.11 | - | - | - | $20.11 | |
| Richmond, VA | - | 94.40% | - | - | 94.40% | Richmond, VA | - | $18.55 | - | - | $18.55 | |
| Riverside, CA | 90.00% | - | 86.80% | - | 88.40% | Riverside, CA | $19.40 | - | $16.36 | - | $17.88 | |
| Sacramento, CA | 91.50% | 94.40% | - | - | 92.95% | Sacramento, CA | $18.05 | $20.67 | - | - | $19.36 | |
| San Antonio, TX | 89.00% | - | 83.80% | - | 86.40% | San Antonio, TX | $16.66 | - | $15.36 | - | $16.01 | |
| San Diego, CA | 92.20% | - | - | - | 92.20% | San Diego, CA | $26.27 | - | - | - | $26.27 | |
| San Fransisco, CA | - | 94.70% | - | 94.90% | 94.80% | San Fransisco, CA | - | $35.10 | - | $32.58 | $33.84 | |
| Sarasota, FL | - | - | 84.40% | - | 84.40% | Sarasota, FL | - | - | $21.04 | - | $21.04 | |
| Seattle, WA | - | - | - | 93.50% | 93.50% | Seattle, WA | - | - | - | $25.43 | $25.43 | |
| Tampa, FL | 91.90% | 93.60% | - | - | 92.75% | Tampa, FL | $20.27 | $20.25 | - | - | $20.26 | |
| Toucson, AZ | 90.20% | - | - | - | 90.20% | Toucson, AZ | $16.97 | - | - | - | $16.97 | |
| Tulsa, OK | - | - | 87.10% | - | 87.10% | Tulsa, OK | - | - | $11.17 | - | $11.17 | |
| West Palm Beach, FL | - | - | - | 92.70% | 92.70% | West Palm Beach, FL | - | - | - | $26.16 | $26.16 | |
| Other | 89.80% | 94.40% | 86.00% | 93.30% | 90.88% | Other | $19.17 | $17.72 | $15.27 | $18.33 | $17.62 | |
| Total | 91.50% | 94.10% | 86.40% | 93.00% | 91.25% | Total | $22.47 | $21.63 | $15.66 | $22.54 | $20.58 | |
