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Heading into the second half of 2026, trends in the self-storage investment market are creating opportunities for investors with the right investment strategy, but we are also seeing many groups on the sidelines due to cost of capital or investment expectations that are unachievable in today’s market. The self-storage investment market is clearly showing signs of a K-Shaped recovery with major market deals commanding premiums while secondary and tertiary market investment opportunities are showing soft pricing fundamentals. The self-storage industry continues to find itself navigating two converging headwinds: an active development pipeline and continued flat or muted operating fundamentals. Over the last six months we have seen interest rates remain flat with the ten year treasury hovering around 4.5%. While I would agree that many elements of the economy appear to be stable and growing, the confidence of entrepreneurial self-storage investors seems to be wavering with new supply hitting the market, overall lower occupancies, and slower rental rate growth. As a result, many entrepreneurial investors are being more conservative with underwriting self-storage investments today.