Posted by .

Over the past several years, the self-storage industry has found itself operating in a unique and, at times, contradictory environment. On one hand, operating fundamentals, particularly occupancy and rental rate growth, have softened meaningfully from their pandemic-era highs. On the other hand, investor demand for self-storage remains robust, capital is plentiful, and asset values continue to hold firm with cap rates being lower than historical averages considering the cost of debt today. This divergence between operating performance and investment demand has created one of the most nuanced ownership environments we have seen in recent memory.