Key facts
- Self-storage market investment is rebounding after a period of decline.
- Public Storage acquired National Storage Affiliates Trust for $10.5B.
- Total sales volume for self-storage properties is projected to reach nearly $6B by November 2025.
- The price per square foot for self-storage units has increased by roughly 26% to $123.
- Self-storage property values fell approximately 25% from peak levels by Q2 2025 but have since increased.
The self-storage sector is showing signs of recovery, with investment activity picking up after a period of stagnation attributed to high interest rates and a slowdown in home sales. Major transactions, such as Public Storage's $10.5 billion acquisition of National Storage Affiliates Trust and StorageMart's $1 billion purchase of New York City facilities, indicate renewed investor confidence.
Industry data suggests a significant increase in property sales volume and price per square foot. MMCG Invest reported nearly $6 billion in self-storage property trades through November 2025, a substantial rise from 2024. Yardi Matrix data shows the price per square foot has jumped approximately 26% to $123.
Experts at Bisnow's National Self-Storage Conference believe the sector has bottomed out and is now on an upward trajectory. Tom Hughes, chief investment officer at Reliant Real Estate Management, stated that current buying conditions are favorable, suggesting the market is at or rising from its trough.
The self-storage industry has historically maintained a symbiotic relationship with the housing market, as population movement drives demand for storage. However, rapid interest rate hikes starting in 2022 led to a drop in home sales, consequently impacting self-storage property values, which fell about 25% from their peak by the second quarter of 2025, according to Nuveen Real Estate. Beau Raich of SROA Capital noted that the primary impact of rising rates was not on lending costs but on the reduction in people moving.
Nuveen Real Estate's report indicated that self-storage property prices reached their lowest point in Q2 2025 before increasing over the following two quarters. As U.S. home sales begin to recover, demand for self-storage is gradually rebounding.
While investor interest is returning, some firms, like The Ardent Cos., are adopting a more selective approach to acquisitions. Zachary Dickens, chief investment officer with Extra Space Storage, noted that the sector's resilience during the pandemic, characterized by consistent cash flow and double-digit yields, is attracting investors. However, he cautioned that current yield expectations need to be reset to a lower double-digit range (10%-12%) due to an oversupply of units and slower rent growth, a shift from the 18%-20% returns seen in the immediate post-pandemic years.