Self-Storage REIT Highlights
CubeSmart
- Move-In Rate Improvement: Year-over-year move-in rent decline narrowed from –8.3% in Q1 to –3.3% in July, with the gap –4% in Q2 and “narrowing throughout the month.”
- Occupancy Recovery: Average Q2 same-store occupancy 90.6%, down 80 bps YoY; trough-to-peak seasonal lift +190 bps vs +180 bps in 2024.
- Cost Management Wins: Same-store OpEx +1.2% YoY, helped by a better-than-anticipated insurance renewal, successful tax appeals, and efficiency projects (staffing/telecom).
Extra Space Storage
- Positive Rate Growth Returns: First positive new-customer rate growth since March 2022; July new-customer rate up a little more than 2% YoY.
National Storage Affiliates
- Revenue Trend Improvement: RevPAR YoY delta improved from –4.2% (Feb) to –1.6% (July); in-place contract rates flat YoY.
Public Storage
- Rate-Led Growth Despite Headwinds: Rental rates up 0.6% YoY in Q2, offsetting slightly lower occupancy; same-store revenue increased for a second consecutive quarter after declines last year.
SmartStop Self Storage
- Canadian Market Strength: Toronto same-store revenue +2% YoY in Q2 with occupancy around 93%.
Thoughts from the CEO’s
Macroeconomic Highlights
In Q2 2025, macroeconomic conditions remained challenging but showed early signs of stabilization as the Federal Reserve held rates high amid sticky service-sector inflation, with markets anticipating a modest cut later this year; capital markets showed improvement, with the bid ask spread decreasing, yet sector fundamentals proved resilient: manufactured housing REITs delivered strong NOI growth on the back of rent increases, high occupancy, and rental conversions supported by affordability-driven demand; medical office REITs benefited from favorable lease escalations and regulatory momentum from a proposed CMS rule expanding outpatient eligibility, though biotech and lab exposure faced capital pressures; and self-storage REITs posted sequential improvement in rental rates and occupancy after a soft start to the year, with operators leaning on expense control, targeted acquisitions, and portfolio optimization to offset Sunbelt supply pressures – collectively, REIT performance underscored that while high rates and inflationary costs remain headwinds, long-term demand drivers such as constrained housing affordability, demographic growth, and essential service demand continue to provide durable support.
Inflation and the 10-Year Treasury Since 2022
Inflation and the 10-Year Treasury Since 1962
Q2 2025 Self-Storage REIT Data Overview
| Same Store Ending Occupancy | Same Store YoY Rental Revenue Increase | Same Store YoY Expense Increase | Same Store YoY NOI Increase | Same Store Achieved Rate | Q2 Acquisitions | ||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | % Change | 2025 | 2024 | |
| CUBE | 91.10% | 91.90% | -0.70% | -0.30% | 1.20% | 4.20% | -1.10% | -1.20% | $23.37 | $23.40 | -0.1% | 0 | 0 |
| EXR | 94.60% | 94.30% | 0.20% | 0.70% | 8.60% | 6.00% | -3.10% | -1.10% | $19.68 | $21.63 | -9.0% | 2 | 3 |
| NSA | 85.00% | 87.00% | -3.13% | -2.83% | 4.59% | 4.80% | -6.08% | -5.60% | $15.68 | $15.66 | 0.1% | 2 | 3 |
| PSA | 92.20% | 92.70% | 0.20% | -1.10% | 2.10% | 2.60% | -0.30% | -2.00% | $22.67 | $22.72 | -0.2% | 16 | 2 |
| SMA | 93.00% | 92.90% | 0.40% | 1.24% | 3.48% | 5.30% | -1.10% | -0.60% | $19.89 | $20.15 | -1.3% | 7 | 1 |
Q2 2025 Self-Storage Operating Fundamentals
Self-Storage Rental Rates
Overall, Self-Storage rate trends have been going in a positive direction. CubeSmart reported that in the first quarter, move-in rents were down 8.3% over the first quarter of last year. That gap in the second quarter contracted to 4%. And in July, the gap was 3.3% and has been narrowing throughout the month. In July, the gap to last year in move-in rents and occupancy continued to contract. Extra Space Storage achieved positive new-customer rate growth for the first time since March 2022, with July new customer rates up slightly more than 2% year-over-year; however, overall rental rates were down about 1% year-over-year due to move-out roll downs. NSA’s RevPAR increased for five consecutive months through July, with year-over-year decline improving from –4.2% in February to –2.2% in June and –1.6% in July; in-place contract rates were flat year-over-year. Public Storage’s rental rates in Q2 were down 0.2% across the same-store pool, with move-in rents down ~5% for the quarter; July rents trended mid-single-digit declines, impacted optically by a July 4th sale. SmartStop’s web rates were up approximately 2.4% year-over-year in Q2, while achieved move-in rates were down 2.5%; same store achieved rates declined by 1.3% year-over-year with concessions “very muted” compared to 2024.
Achieved Rates (Same Store)
Self-Storage Occupancy
CubeSmart’s same-store ending occupancy declined 80 bps year-over-year to 91.1% in Q2, with trough-to-peak occupancy improving 190 bps compared to 180 bps last year; July occupancy gap to prior year narrowed further. Extra Space Storage ended Q2 at 94.6% occupancy, up 30 bps year-over-year and 120 bps sequentially from Q1; July occupancy held flat sequentially at 94.6%, up ~50 bps year-over-year. NSA’s same-store occupancy declined by 200 basis points to 85% in Q2, ending July at 85.3%, up from a 40 bps sequential decline in July 2024; year-over-year occupancy gap narrowed from –220 bps in June to –150 bps in July. Public Storage’s same-store occupancy gap improved from –80 bps at the start of 2025 to –50 bps at Q2 end and –30 bps in late July. SmartStop’s ending same-store occupancy was 93% in Q2, up 10 bps year-over-year.
Period Ending Occupancy (Same Store)
Self-Storage Income & Expenses
CubeSmart’s same-store rental revenue declined 0.7% year-over-year, with same-store operating expenses up 1.2%; cost improvements came from a better-than-expected May insurance renewal, successful property tax appeals, and staffing/telecom efficiencies. Extra Space Storage had an increase in same-store rental revenue of 20bps, aided by stronger tenant insurance and management fee income; same-store expenses rose 8.6% year-over-year, primarily due to property tax increases in legacy Life Storage assets in CA, GA, IL, and TX, though expense growth is expected to moderate in H2. NSA’s same-store revenue fell 3.1%, driven by 200 bps lower occupancy and a 30 bps drop in average rent per square foot; expenses grew 4.6%, led by property taxes (tough prior-year comps), marketing (+39%), repair & maintenance (inflation and deferred work), and utilities, partially offset by lower personnel costs. Public Storage’s same-store rental revenue increased 0.2%, with occupancy slightly lower but offset by rent gains; expense control exceeded expectations, helping NOI outperform. SmartStop’s same-store revenue grew 40 bps year-over-year (constant currency +50 bps), with expenses up 3.5% (taxes +7.8%, insurance +5.9%, marketing –6.3%, utilities/admin/professional flat to down), resulting in a 1.1% NOI decline; sequential same-store revenue rose ~1% from Q1.
YoY Rental Income Growth (Same Store)
YoY Expense Growth (Same Store)
YoY NOI Growth (Same Store)
Self-Storage Investment & Transaction Activity
CubeSmart added 30 stores to its third-party management platform in Q2, ending with 873 stores; it was quiet on balance-sheet acquisitions but continues to evaluate opportunities without finding marketed returns compelling. Extra Space acquired 2 properties for $29M, bought out JV partners’ stakes in 27 properties for $326M, originated $158M in bridge loans, and added a net 74 stores to its management portfolio (now 1,749 stores). NSA sold 10 noncore properties (all former PRO) in Q2, exiting 4 states (5 year-to-date), acquired 1 property in TX and a CA annex via 1031 exchange, and its 2023 JV acquired 1 NY and 1 TN property; $40M net proceeds from sales paid down its revolver. Public Storage has $785M of acquisitions closed/under contract YTD and over $1.1B in announced acquisitions/developments for 2025; pipeline is broad-based, with some Sunbelt exposure but often submarket-specific targeting. SmartStop acquired 7 Class A properties for $150M on-balance-sheet in Q2, plus $75M into managed REITs; put $97M CAD under contract in Alberta (closing late Aug.); YTD on-balance-sheet acquisitions total $232M, and since 9/30/24 nearly $500M.
Acquisition Dollar Amount History
*Excludes PSA Acquisition of ezStorage in Q2 2021 for $1.8 Billion
*Excludes PSA Acquisition of All Storage in Q4 2021 for $1.5 Billion
*Excludes PSA Acquisition of Simply Storage in Q3 2023 for $2.2 Billion
*Excludes EXR Acquisition of Life Storage in Q3 2023 for $11.6 Billion
Under Construction NRSF as a % of Existing Inventory – June 2025
* Source: Yardi Matrix
NRSF Delivered as a % of Starting Inventory – Last 36 & 12 Months – June 2025
* Source: Yardi Matrix
Self-Storage Cap Rates & Bid-Ask Spread
Public Storage reported more owners willing to transact at “appropriate” valuations, with some softening in cap rate and value expectations; most 2025 deals have been off-market, with two moderate portfolios and mostly one-off acquisitions. CubeSmart has seen a healthy flow of opportunities but finds current marketed risk-adjusted returns not compelling. NSA described the market as competitive, staying disciplined with capital, and favoring debt paydown from asset sales. SmartStop’s Q2 acquisitions had going-in yields in the mid-5% range, with management upside potential.
Implied Cap Rate History
*The implied cap rate data indicates the market value of each REIT.
The implied capitalization rate is a culmination of the company value and total debt of each company divided by its NOI.
Enterprise Value History
Headwinds in the Self-Storage Market
Macro headwinds include elevated interest rates, constrained housing affordability, and inflationary cost pressures. CubeSmart and NSA noted Sunbelt markets—especially Florida, Arizona, Atlanta, and Phoenix—remain pressured by new supply. NSA cited elevated concessions as a near-term revenue drag and slower-than-expected realization of benefits from pro internalization. Public Storage reported some normalization challenges in Atlanta, Dallas, and parts of Florida. SmartStop described “choppy” demand with April weak, May strong, and June weaker than anticipated.
Tailwinds in the Self-Storage Market
CubeSmart, Extra Space, NSA, and SmartStop all cited narrowing occupancy and rate gaps as evidence of stabilization. New supply is projected to decline well below historical averages in coming years, supporting the supply-demand balance. Public Storage highlighted strong brand recognition, diversified markets, and an optimized digital/in-person service model. SmartStop noted healthy customer metrics (low delinquencies, stable ECRIs, above-average length of stay) and stronger fundamentals in Canada (lower supply per capita, less institutional competition, demographic growth), with Toronto same-store revenue up 2% in Q2 and ~93% occupancy. Extra Space and CubeSmart pointed to easing supply pressure in certain markets (e.g., New York MSA, Chicago, Mid-Atlantic) as a positive factor.
Q2 2025 Self-Storage REIT Data by MSA
| Average Occupancy Same Store | Achieved Rate Same Store | |||||||||||||
| CUBE | EXR | NSA | PSA | SMA | Average | CUBE | EXR | NSA | PSA | SMA | Average | |||
| Asheville, NC | - | - | - | - | 94.10% | 94.10% | Asheville, NC | - | - | - | - | $17.35 | $17.35 | |
| Atlanta, GA | 88.40% | 94.10% | 80.30% | 89.10% | - | 87.98% | Atlanta, GA | $15.59 | $16.01 | $13.04 | $16.07 | - | $15.18 | |
| Austin, TX | 88.60% | 94.30% | 82.70% | - | - | 88.53% | Austin, TX | $16.95 | $15.83 | $16.31 | - | - | $16.36 | |
| Baltimore, MD | 93.50% | - | - | 94.00% | - | 93.75% | Baltimore, MD | $22.25 | - | - | $23.12 | - | $22.69 | |
| Bend, OR | - | - | 89.30% | - | - | 89.30% | Bend, OR | - | - | $15.23 | - | - | $15.23 | |
| Boston, MA | 91.00% | 93.90% | - | 95.20% | - | 93.37% | Boston, MA | $25.65 | $24.92 | - | $28.36 | - | $26.31 | |
| Bridgeport, CT | 91.80% | - | - | - | - | 91.80% | Bridgeport, CT | $27.44 | - | - | - | - | $27.44 | |
| Brownsville, TX | - | - | 88.30% | - | - | 88.30% | Brownsville, TX | - | - | $13.09 | - | - | $13.09 | |
| Charleston, SC | 87.90% | 94.30% | - | - | - | 91.10% | Charleston, SC | $15.82 | $18.92 | - | - | - | $17.37 | |
| Charlotte, NC | 90.10% | 94.30% | - | 90.50% | - | 91.63% | Charlotte, NC | $18.07 | $16.93 | - | $15.86 | - | $16.95 | |
| Chicago, IL | 92.70% | 94.20% | - | 93.40% | 93.80% | 93.53% | Chicago, IL | $19.53 | $20.65 | - | $20.91 | $15.84 | $19.23 | |
| Cincinnati, OH | - | 95.50% | - | - | - | 95.50% | Cincinnati, OH | - | $13.88 | - | - | - | $13.88 | |
| Cleveland, OH | 89.80% | 93.90% | - | - | - | 91.85% | Cleveland, OH | $16.88 | $13.84 | - | - | - | $15.36 | |
| Colorado Springs, CO | - | - | 84.50% | - | - | 84.50% | Colorado Springs, CO | - | - | $13.40 | - | - | $13.40 | |
| Columbus, OH | 91.30% | 94.20% | - | - | - | 92.75% | Columbus, OH | $13.48 | $13.28 | - | - | - | $13.38 | |
| Dallas, TX | 90.60% | 94.00% | 80.10% | 90.40% | - | 88.78% | Dallas, TX | $17.80 | $16.98 | $13.97 | $17.25 | - | $16.50 | |
| DC | 92.50% | 95.00% | - | 94.00% | - | 93.83% | DC | $26.55 | $23.55 | - | $27.22 | - | $25.77 | |
| Denver, CO | 92.70% | 92.30% | - | 93.20% | 93.60% | 92.95% | Denver, CO | $18.29 | $17.91 | - | $19.01 | $17.81 | $18.26 | |
| Detroit, MI | - | - | - | 92.90% | - | 92.90% | Detroit, MI | - | - | - | $18.25 | - | $18.25 | |
| Ft Myers, FL | 88.00% | 93.00% | - | - | - | 90.50% | Ft Myers, FL | $19.18 | $15.01 | - | - | - | $17.10 | |
| Hawaii, HI | - | 93.80% | - | 96.00% | - | 94.90% | Hawaii, HI | - | $45.30 | - | $55.55 | - | $50.43 | |
| Hartford, CT | 88.80% | 93.40% | - | - | - | 91.10% | Hartford, CT | $17.51 | $19.34 | - | - | - | $18.43 | |
| Houston, TX | 91.50% | 93.60% | 85.50% | 90.80% | 94.80% | 91.24% | Houston, TX | $17.44 | $16.08 | $13.37 | $17.07 | $18.75 | $16.54 | |
| Hunstville, AL | - | 93.10% | - | - | - | 93.10% | Hunstville, AL | - | $9.96 | - | - | - | $9.96 | |
| Indianapolis. IN | - | 93.50% | - | - | - | 93.50% | Indianapolis. IN | - | $11.95 | - | - | - | $11.95 | |
| Jacksonville, FL | 91.20% | 94.60% | - | - | - | 92.90% | Jacksonville, FL | $20.62 | $16.28 | - | - | - | $18.45 | |
| Las Vegas, NV | 92.10% | 93.90% | 89.40% | - | 92.60% | 92.00% | Las Vegas, NV | $18.08 | $15.79 | $14.00 | - | $18.01 | $16.47 | |
| Los Angeles, CA | 91.70% | 94.50% | 83.10% | 95.00% | 93.40% | 91.54% | Los Angeles, CA | $27.62 | $27.95 | $25.30 | $36.01 | $25.43 | $28.46 | |
| Louisville, KY | - | 94.40% | - | - | - | 94.40% | Louisville, KY | - | $11.71 | - | - | - | $11.71 | |
| Memphis, TN | - | 93.80% | - | - | - | 93.80% | Memphis, TN | - | $11.36 | - | - | - | $11.36 | |
| McAllen, TX | - | - | 88.30% | - | - | 88.30% | McAllen, TX | - | - | $13.34 | - | - | $13.34 | |
| Miami, FL | 91.90% | 94.50% | - | 92.60% | 93.50% | 93.13% | Miami, FL | $25.45 | $27.02 | - | $30.27 | $25.39 | $27.03 | |
| Minneapolis, MN | - | - | - | 94.10% | - | 94.10% | Minneapolis, MN | - | - | - | $16.66 | - | $16.66 | |
| Nantucket, MA | - | - | - | - | 92.80% | 92.80% | Nantucket, MA | - | - | - | - | $43.22 | $43.22 | |
| Nashville, TN | 90.70% | - | - | - | - | 90.70% | Nashville, TN | $16.36 | - | - | - | - | $16.36 | |
| New York, NY | 90.90% | 94.00% | - | 93.30% | - | 92.73% | New York, NY | $37.58 | $28.32 | - | $32.79 | - | $32.90 | |
| Norfolk, VA | - | 95.20% | - | - | - | 95.20% | Norfolk, VA | - | $16.67 | - | - | - | $16.67 | |
| OKC, OK | - | - | 81.60% | - | - | 81.60% | OKC, OK | - | - | $11.53 | - | - | $11.53 | |
| Orlando, FL | 92.20% | 93.50% | 82.50% | 90.50% | - | 89.68% | Orlando, FL | $16.72 | $16.18 | $15.41 | $18.72 | - | $16.76 | |
| Philadelphia, PA | 91.20% | 94.60% | - | 93.40% | - | 93.07% | Philadelphia, PA | $20.02 | $19.35 | - | $20.53 | - | $19.97 | |
| Phoenix, AZ | 88.90% | 94.40% | 79.50% | 93.00% | 94.20% | 90.00% | Phoenix, AZ | $16.58 | $16.94 | $15.77 | $19.18 | $17.25 | $17.14 | |
| Portland. OR | - | 95.20% | 88.80% | 92.50% | - | 92.17% | Portland. OR | - | $20.67 | $18.74 | $21.79 | - | $20.40 | |
| Port St. Lucie, FL | - | - | - | - | 93.60% | 93.60% | Port St. Lucie, FL | - | - | - | - | $18.80 | $18.80 | |
| Providence, RI | 89.40% | - | - | - | - | 89.40% | Providence, RI | $19.49 | - | - | - | - | $19.49 | |
| Raleigh, NC | - | 96.10% | - | - | - | 96.10% | Raleigh, NC | - | $15.98 | - | - | - | $15.98 | |
| Richmond, VA | - | 96.00% | - | - | - | 96.00% | Richmond, VA | - | $18.52 | - | - | - | $18.52 | |
| Riverside, CA | 89.70% | - | 84.00% | - | 93.20% | 88.97% | Riverside, CA | $18.86 | - | $16.24 | - | $21.15 | $18.75 | |
| Sacramento, CA | 88.20% | 93.20% | - | 93.10% | - | 91.50% | Sacramento, CA | $17.68 | $19.08 | - | $21.84 | - | $19.53 | |
| San Antonio, TX | 89.20% | 93.50% | 81.90% | - | - | 88.20% | San Antonio, TX | $15.73 | $15.13 | $14.98 | - | - | $15.28 | |
| San Diego, CA | 89.80% | 93.50% | - | 93.90% | 92.40% | 92.40% | San Diego, CA | $26.14 | $27.28 | - | $30.50 | $26.38 | $27.58 | |
| San Fransisco, CA | - | 94.40% | - | 94.10% | 90.60% | 93.03% | San Fransisco, CA | - | $34.95 | - | $33.65 | $23.08 | $30.56 | |
| Sarasota, FL | - | 92.90% | 85.50% | - | - | 89.20% | Sarasota, FL | - | $16.53 | $19.71 | - | - | $18.12 | |
| Seattle, WA | - | 94.90% | - | 93.10% | 94.50% | 94.17% | Seattle, WA | - | $21.47 | - | $26.55 | $20.23 | $22.75 | |
| St. Louis, MO | - | 94.60% | - | - | - | 94.60% | St. Louis, MO | - | $14.48 | - | - | - | $14.48 | |
| Tampa, FL | 90.80% | 93.80% | - | 91.30% | 93.90% | 92.45% | Tampa, FL | $21.54 | $19.27 | - | $19.56 | $19.57 | $19.99 | |
| Toronto, Canada | - | - | - | - | 92.90% | 92.90% | Toronto, Canada | - | - | - | - | $21.28 | $21.28 | |
| Toucson, AZ | 87.00% | - | - | - | - | 87.00% | Toucson, AZ | $16.10 | - | - | - | - | $16.10 | |
| Tulsa, OK | - | - | 81.80% | - | - | 81.80% | Tulsa, OK | - | - | $11.31 | - | - | $11.31 | |
| West Palm Beach, FL | - | 94.50% | - | 91.80% | - | 93.15% | West Palm Beach, FL | - | $19.86 | - | $25.83 | - | $22.85 | |
| Wichita, KS | - | - | 87.80% | - | - | 87.80% | Wichita, KS | - | - | $12.93 | - | - | $12.93 | |
| Other | 88.40% | 94.60% | 83.90% | 92.40% | 92.10% | 90.28% | Other | $18.64 | $16.00 | $15.25 | $16.25 | $17.25 | $16.68 | |
| Total | 90.60% | 94.20% | 84.20% | 92.60% | 93.10% | 90.94% | Total | $22.45 | $19.68 | $15.68 | $22.50 | $19.89 | $20.04 | |
Contributors
Steven Paul
Senior Financial Analyst
Aaron Sanchez
Managing Director
Scott Schoettlin
Senior Managing Director
