After years of rapid expansion, the self-storage industry in the United States has become more cautious in 2025. According to a new analysis by StorageCafe, there was a 21% decrease in new deliveries year over year as developers focused on high-intent locations. This strategic approach allowed projects to continue in metropolitan areas where population shifts and housing turnover are influencing local commercial real estate dynamics.
Atlanta and Phoenix emerged as key markets, with Atlanta leading the nation by adding 2.2 million square feet of new self-storage space. Phoenix was the only other city to surpass the 2-million-square-foot mark among 13 metros that exceeded 1 million square feet. The new construction expanded inventory by approximately 4–5% in both cities, indicating controlled growth rather than an oversupply.
Despite increased delivery volumes, average street rates remained stable at around $120 in both Atlanta and Phoenix. This suggests that the new spaces were absorbed without causing significant price disruptions. Real Estate Investment Trust (REIT) ownership is substantial in these markets, with about 48% of Atlanta’s inventory and 43% of Phoenix’s under REIT control. This highlights why institutional capital continues to be active even as construction slows elsewhere.
The data indicates a sector becoming more selective, with Atlanta and Phoenix not only building extensively but also continuing development while other areas reduced activity.
For further details, refer to the full analysis here.
