Self-Storage Spending Growth Slowed in August, Keybanc Data Shows

Consumer spending growth in the self-storage sector decelerated significantly in August, according to an analysis of credit and debit card data by Keybanc. The slowdown suggests potential headwinds for operators as the industry moves into its seasonally slower fall leasing period.

August Data Shows Sharp Deceleration

Spending per transaction in the self-storage sector rose just 0.9% year-over-year in August, a marked slowdown from the 2.3% growth recorded in July, the Keybanc report stated. This represents a deceleration of 140 basis points from the previous month.

Key figures from the August data include:

• Average spending per transaction was $172.33, a 1.4% decrease from July’s $174.77.
• The month-over-month decline contrasts with a typical seasonal increase of 0.2%.
• Keybanc noted this was the second-weakest July-to-August change in its dataset, which spans over 10 years.

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Broader Trends and Industry Outlook

The data, which Keybanc's report says serves as an indicator for in-place contract rents, showed moderating multi-month trends. On a three-month rolling basis from June through August, average revenue per transaction increased 1.3% year-over-year, down from 1.7% in the prior three-month period.

Keybanc noted that the August figures are consistent with recent commentary from self-storage real estate investment trusts (REITs) and private operators. The firm also suggested that a stable performance in September could support an acceleration in the third-quarter growth rate, as June's weaker 0.7% year-over-year comparison drops from the rolling calculation.