Q3 Self-Storage Industry Report

“Our lower beta urban markets continue to outperform the Sun Belt. In the overall New York MSA, rentals were up year-over-year, demonstrating the continued solid demand profile in this key urban market. This increase was led by our portfolio in the New York City boroughs, up 7.4%, offset by rentals being down 11.6% in our Northern New Jersey portfolio. As we move forward, we remain disciplined in our capital allocation decisions and are prepared to move decisively and with conviction for opportunities that fit our investment thesis.”

“We’re leveraging our scale, optimizing store performance, and driving growth through our ancillary businesses. The move to a single brand for the Life Storage portfolio is already delivering tangible benefits, and we are well-positioned to seize opportunities as market fundamentals improve.”

“The transition of PRO stores is not just about systems; it’s about unlocking growth. Early results in markets like Phoenix and Las Vegas demonstrate that our revenue and customer acquisition strategies are working. Combined with strong acquisition opportunities and an improving transaction market, we are setting the stage for 2025 to be a year of growth and optimization.”

“As we anticipated, operating fundamentals are stabilizing across our portfolio and the broader industry. Pricing for new customers is stabilizing, with move-in rents down 9% year-over-year in the third quarter and 5% in October. This is a meaningful improvement from the first quarter of this year, when move-in rents were down 16%. Our in-place customers are behaving very well, with payment patterns strong, average length of stay long, and move-outs down year-to-date. With move-in rents down nearly 30% since 2022, we’ve become even more affordable relative to other space alternatives. Stabilization should fundamentally lead to improvement.”