Washington, D.C.’s self-storage sector is showing stabilized growth driven by strong in-migration and a slowdown in new construction, according to a recent report by Marcus & Millichap.
The Midyear 2025 Washington, D.C. Self-Storage Investment Outlook report highlights that construction is easing across the region, with fewer than 1 million square feet of self-storage space expected to open, the lowest since 2015, keeping metro-wide inventory growth at just 1.5 percent.
The average asking rents are projected to rise to $1.45 per square foot by December, marking the first improvement in stabilized rent since 2020. Vacancy is forecast to inch up slightly to 8.0 percent.
“With net in-migration at multi-decade highs and construction activity slowing, Washington, D.C.’s self-storage market is entering a phase of stabilized growth and improving fundamentals,” said Brian Hosey, Senior Managing Director/Market Leader. “A historic slowdown in development combined with rising asking rents positions the region’s self-storage sector as one of the more resilient and compelling opportunities for investors in 2025,” added Hosey.
The post Report: DC’s Self-Storage Sector is Stabilizing appeared first on Connect CRE.
