Self-Storage REITs Adjust Online Pricing to Attract Customers During Peak Season
In a recent report released by Cubby, titled the State of Self Storage Q3 2026, notable trends were observed regarding online pricing strategies adopted by self-storage Real Estate Investment Trusts (REITs). From May to September, the median online rate for a typical 10x10 unit offered by these REITs fell by a substantial 8.6%. This strategic reduction aimed to drive occupancy rates higher during the typically busy peak season. On the other hand, independent operators did not mirror this trend, maintaining their rates within a narrow margin, no more than half a point from their price levels in May.
The findings highlight a significant divergence in pricing strategies between larger REITs and smaller independent storage facilities. While REITs opted for aggressive price cuts, independent operators appeared cautious, perhaps relying on loyal customer bases or other operational strategies to maintain occupancy. Notably, this tactic of reducing rental rates has proven effective, with occupancy among storage facilities on the Cubby platform reaching an impressive 80.4%, up by 2.9 percentage points compared to the previous year.
Delving deeper into the report's insights reveals that average move-in rents saw a dip of about 4.4%. However, revenue per available square foot surprisingly increased by 4.9%. This reflects the nuanced impact of pricing strategies; facilities that slashed starting rents by more than 10% experienced a remarkable 5.2% growth in move-ins, indicating that significant price reductions can indeed attract more customers. Interestingly, it was revealed that 38% of surveyed facilities undertook these substantial cuts, while the remainder of the operators – particularly those who did not adjust rates at all – suffered in terms of attracting new move-ins.
Andrew Capranos, President of Self Storage at Cubby, weighed in on the findings, emphasizing the competitive landscape faced by independent operators. "Most operators already know advertised rates are down," he remarked. "What we couldn't see before is whether those cuts brought in more renters. If you run an independent store, you're competing with the online rate at the facility down the street, and that rate has changed."
The report also examined tenant behavior concerning rent increases. It was shown that increases of less than 8% had minimal effect on tenant retention, with an exit rate of only 8.5% for tenants who received small increases. Conversely, for those facing substantial increases of 25% or more, the move-out rate surged to 16.0%. This data suggests that while small adjustments may be manageable for long-term tenants, significant spikes in rent can drive them away, underscoring the necessity for careful pricing management in the storage sector.
Moreover, the report provides insights into various operational benchmarks, laying out scorecards for nine key metrics across 31 states and the 25 largest metropolitan areas in the United States. Such detailed analytics serve as indispensable tools for storage operators aiming to assess their competitive positioning and operational effectiveness.
The data used for this report was derived from anonymized records associated with storage facilities and tenant activities on the Cubby platform, and it included competitive rental rate information for more than 50,000 storage facilities across the U.S. Importantly, individual operators or tenants were not identifiable in the disclosures.
Cubby itself positions as a progressive platform within the self-storage realm, integrating diverse operational components, including revenue management, call management, and e-commerce functionalities, facilitating streamlined operations for facility owners. With its innovative approach, Cubby aims to enhance the overall efficiency and success of self-storage businesses nationwide.
For further details, the report is accessible for free at cubbystorage.com/state-of-self-storage-q3, providing invaluable insights for industry stakeholders looking to navigate the modern challenges of self-storage management.
The findings highlight a significant divergence in pricing strategies between larger REITs and smaller independent storage facilities. While REITs opted for aggressive price cuts, independent operators appeared cautious, perhaps relying on loyal customer bases or other operational strategies to maintain occupancy. Notably, this tactic of reducing rental rates has proven effective, with occupancy among storage facilities on the Cubby platform reaching an impressive 80.4%, up by 2.9 percentage points compared to the previous year.
Delving deeper into the report's insights reveals that average move-in rents saw a dip of about 4.4%. However, revenue per available square foot surprisingly increased by 4.9%. This reflects the nuanced impact of pricing strategies; facilities that slashed starting rents by more than 10% experienced a remarkable 5.2% growth in move-ins, indicating that significant price reductions can indeed attract more customers. Interestingly, it was revealed that 38% of surveyed facilities undertook these substantial cuts, while the remainder of the operators – particularly those who did not adjust rates at all – suffered in terms of attracting new move-ins.
Andrew Capranos, President of Self Storage at Cubby, weighed in on the findings, emphasizing the competitive landscape faced by independent operators. "Most operators already know advertised rates are down," he remarked. "What we couldn't see before is whether those cuts brought in more renters. If you run an independent store, you're competing with the online rate at the facility down the street, and that rate has changed."
The report also examined tenant behavior concerning rent increases. It was shown that increases of less than 8% had minimal effect on tenant retention, with an exit rate of only 8.5% for tenants who received small increases. Conversely, for those facing substantial increases of 25% or more, the move-out rate surged to 16.0%. This data suggests that while small adjustments may be manageable for long-term tenants, significant spikes in rent can drive them away, underscoring the necessity for careful pricing management in the storage sector.
Moreover, the report provides insights into various operational benchmarks, laying out scorecards for nine key metrics across 31 states and the 25 largest metropolitan areas in the United States. Such detailed analytics serve as indispensable tools for storage operators aiming to assess their competitive positioning and operational effectiveness.
The data used for this report was derived from anonymized records associated with storage facilities and tenant activities on the Cubby platform, and it included competitive rental rate information for more than 50,000 storage facilities across the U.S. Importantly, individual operators or tenants were not identifiable in the disclosures.
Cubby itself positions as a progressive platform within the self-storage realm, integrating diverse operational components, including revenue management, call management, and e-commerce functionalities, facilitating streamlined operations for facility owners. With its innovative approach, Cubby aims to enhance the overall efficiency and success of self-storage businesses nationwide.
For further details, the report is accessible for free at cubbystorage.com/state-of-self-storage-q3, providing invaluable insights for industry stakeholders looking to navigate the modern challenges of self-storage management.
Topics Business Technology）
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