**Report: Washington, D.C.’s Self-Storage Sector Shows Signs of Stabilized Growth**
Washington, D.C.’s self-storage market is entering a phase of stabilized growth, propelled by strong net 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” reveals that new construction across the region is easing, with less than one million square feet of self-storage space anticipated to be delivered this year—the lowest level since 2015. As a result, overall inventory growth in the metro is expected to remain modest at 1.5 percent.
A key highlight of the report is the projected rise in average asking rents to $1.45 per square foot by December 2025. This would mark the first increase in stabilized rent since 2020. At the same time, vacancy rates are expected to inch up slightly, reaching approximately 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 and Market Leader at Marcus & Millichap. “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,” Hosey added.
The report underscores a promising outlook for investors, pointing to a more balanced supply-demand dynamic and improved market fundamentals across the D.C. area.
