A Note from the Founder 04.07.2025

Zachary Urow April 22, 2025

Street Rates Climb as New Construction Slows

  • The national average street rate rose 0.3% in March to $16.42 per square foot.
    The increase marks a second consecutive month of growth.
  • Rents rose month-over-month in 26 of the top 30 U.S. metros, led by Phoenix with 1.2% and Miami with 1.0%, while year-over-year declines slowed.
  • The development pipeline fell to 2.9% of inventory, with new supply projected to
    drop 15% in 2025 and 18% in 2026 amid financing and permitting challenges.

AI Integration Accelerates in Self-Storage Industry

  • Cubby has integrated Swivl’s AI tools into its management platform, improving
    customer engagement and operational efficiency.
  • Storagely also partnered with Swivl to add AI features like 24/7 chat and
    automated workflows to enhance tenant communication.
  • AI leaders like IBM and NVIDIA are embedding AI Data Platforms into storage
    systems to support enterprise applications.

Our Thoughts

  • March’s rental rate increase, combined with the continued slowdown in new
    construction, suggest a healthier balance between supply and demand. Operators
    in stable markets may gain greater pricing power, especially as seasonal demand
    rises and competition declines
  • Momentum behind AI adoption is transforming how storage is leased, managed,
    and marketed. Operators who adopt these tools now can streamline operations,
    ease staffing demands, and meet rising expectations for digital convenience.