Self-Storage REIT Update – 4th Quarter 2023

April 3, 2024

Self-storage properties performed remarkably well over the past 24 months with properties showing rapid rent gains and maintaining stable occupancy. In the near term, rent growth is expected to soften, although markets with limited new supply and positive demographic trends will likely outperform. High construction costs and interest rates have resulted in a reduced construction pipeline which should help rental rates and occupancy as we move into the later half of 2024 and into 2025. Still, there is significant capital looking to enter the space. Combined with slowing inflation and the Fed signaling up to three rate cuts this year, construction activity may shift and increase over the next 18 months. Nevertheless, long-term market fundamentals are expected to remain strong.

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