- REITs reported a weighted average achieved rent of $20.71 in Q2 2025, down 3.1% year-over-year, despite rising street rates.
- Street rates rebounded 1.7% YoY, the first positive uptick in over a year, driven by select gains across major operators.
- The street rate discount — the gap between what REITs achieve and what they advertise — shrank to just -1.7%, a significant compression from the -16.5% recorded in Q4 2024.
- CubeSmart led the group with the highest achieved rent at $22.45, while Extra Space lagged with $19.68, despite both showing modest quarterly declines.
Achieved Rents VS. Street Rates
Publicly traded self-storage REITs saw a continued decline in achieved rents during the second quarter of 2025, reports TractIQ. The weighted average fell to $20.71, down from $21.46 in the previous quarter. This represents a year-over-year decrease of 3.1%.
However, in contrast to prior quarters, street rates showed signs of recovery. Rates climbed to $20.36, up 1.7% YoY, suggesting consumer-facing pricing may have hit bottom and is beginning to rebound.
This shift helped narrow the street rate discount. The discount, which measures the difference between advertised and achieved rents, fell to just -1.7%. It’s the smallest margin recorded in nearly two years. This may reflect improved pricing power, optimized promotions, or fewer concessions being offered by operators.
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Operator Highlights
- CubeSmart (CUBE) had the highest achieved rent at $22.45, with street rents also rising to $24.29 — up from $21.08 in Q1.
- Public Storage (PSA) posted stable achieved rents at $22.50, while its street rates grew slightly to $19.21, continuing a modest upward trend since Q4 2024.
- Extra Space Storage (EXR) reported the lowest achieved rents among major REITs at $19.68, with street rents at $20.15.
- National Storage Affiliates (NSA) maintained achieved rents at $15.68, while street rates edged up to $15.42, closing the gap significantly compared to previous quarters.
Why It Matters
The compression between street and achieved rents may signal a turning point in pricing strategy and consumer demand recovery. REITs are still facing lower occupancy and more cautious consumer behavior. However, the recent rate rebound could signal that the worst of the pricing softness is behind the sector.
As self-storage REITs move into the second half of 2025, balancing occupancy with rate integrity will be essential. If demand remains steady, operators may regain pricing power during the peak leasing seasons.
