U.S. Self Storage: MARKET TRENDS & OUTLOOK

The H1 2025 Cushman & Wakefield Valuation Index represents an aggregation of property data from approximately 520 properties throughout the U.S. valued by Cushman & Wakefield. The aggregate market value of this proprietary dataset totals approximately $5.0 billion, with key valuation assumptions detailed in this report.

Transaction volume totaled nearly $2.85 billion in the first half of 2025, which is less than one percent above the total transaction volume reported for the first half of 2023. This level of volume is more in line with transaction trends prior to the surge in self storage investments realized between 2020 and 2022. During this period (2020 to 2022), nearly $50 billion in transaction volume was realized, far exceeding the $35 billion in transaction volume realized in the seven years prior (2013 – 2020).

After peaking at $174.00 per square foot (psf) in Q1 2023, self storage valuations have tapered, declining for six consecutive quarters, to an average of $159.00 psf in Q2 2025, down 12% from peak levels according to Real Capital Analytics. The average price per square foot over the past nine quarters average $152.00 psf.

Capitalization rates for self storage reached an all-time low of 5.0% in Q4 2022, with the widest spread between self storage and apartments in Q2 2022 of 52 basis points (bps). Over the past six quarters, the average capitalization rate has averaged 5.8%.

Self storage rent growth surged in the immediate aftermath of the pandemic, reaching an average all-time high of $134.00 per unit in Q3 2022. Since this time, the average asking rent has ranged from $124.00 to $132.00 per unit with an average of $128.00 per unit. Average rents began to decrease in the second half of 2023, primarily due to softening net demand, new supply and tenants being aware of financial constrains. However, the typical duration of a tenant stay has remained stable.

Elevated construction costs and the possibility of tariffs on construction materials, along with the lack of construction debt liquidity have pushed construction levels downward to more normalized levels. According to Dodge Pipeline, there was a significant increase in the number of projects put on hold in Q2 2025, signaling construction may remain at more moderate levels for the foreseeable future.

Of the 40+ self storage experts who participated in Cushman & Wakefield’s investor survey, 56% expect to see little to no change in capitalization rates over the next 12 months. The slowing housing market was named as the top concern for self storage investments and valuations, noted by 39% of survey respondents, followed by interest rates with nearly 35% of respondents.