In November 2023, the average price per square foot for self-storage units witnessed a considerable YoY decrease compared to November 2022, dropping by 29% to $1.20. The figure was lower than the average price in November 2019, which stood at $1.21.

This downward trend in asking rates reflects a strategic shift by REITs rather than a conclusive indicator of declining demand. By offering initial promotional rates, REITs aim to augment their facilities' physical occupancy, as discussed in last week's article.

However, while this tactic brings immediate results, it projects long-term complications, especially for developers. By effectively raising the barrier to entry, the pricing strategy has caused a slowdown in the supply of new storage spaces across several markets.

This data is based on figures from the top 25 markets and corresponds to the average price per square foot for 10x10CC REITs.

Article Source: Radius+

Could Be Better If

The attached post provides concise, valuable information on pricing trends and industry implications. However, the content could be enhanced by including expert comments or interviews that shed more light on the strategic shift of REITs.

References to more specific data would also bolster the analysis, primarily since it covers the top 25 markets. Detailing how this trend varies across different markets could provide more valuable insight to the reader.

Lastly, visuals, such as charts or graphs illustrating the price decrease YoY and comparisons to previous years, would make the data more digestible and increase overall reader engagement.