Q2 2025 Self Storage REIT Earnings: Green Shoots, Growing Stronger

Last quarter, we highlighted that the commentary out of the major self storage REITs was that pricing power had found stable ground. So what did the REITs say this quarter? Well, more of the same, pricing has indeed bottomed, and they are seeing web rates going positive for the first time in several years.

Source: PSA Public Fillings, DXD Capital

While the road to recovery remains gradual, positive new customer rate trends, stable occupancy, and expanding ancillary income streams all point to a market that’s poised to rebound.

While stable street rates aren’t a victory in themselves, putting that data point alongside other sector fundamentals makes us bullish about the improving conditions for new storage projects.

So What’s Ahead?

In order to answer that question, we look to what happened in the last cycle.

In 2007-2011, development experienced a similar slowdown. Given the commodity nature of storage, when supply slows, the result is pricing power. As you can see below, asking rents increased significantly following the slowdown in new deliveries.