Self-Storage Investors Return as Sector Moves Beyond the Trough

A wave of billion-dollar deals is signaling renewed confidence as the self-storage sector rebounds.

Nina Dale
July 29, 2026

In partnership with

Self-Storage Investors Return as Sector Moves Beyond the Trough

Good morning. A pair of blockbuster acquisitions is putting self-storage back in the spotlight. The sector is recovering from its post-rate-hike slump, though investors are recalibrating what success looks like.

🎙️ This Week on No Cap: Jim Corl of Cohen & Steers joins Jack and Alex to explain why public REITs often signal where private real estate is headed. (Thanks to our sponsor, Lennar Investor Marketplace)

CRE Trivia 🧠

What symbolic height in feet was chosen for One World Trade Center, completed in New York in 2014?

TOGETHER WITH REAL PROPERTY CAPTIVE

Institutional Owners Have Used Captive Insurance For Decades

Every year, you spend six or seven figures on insurance and get nothing in return for running a clean, low-loss ratio portfolio.

Traditional carriers pool you with high-risk owners, raise your premiums unjustifiably, and keep the profits your performance generates while leaving you hesitant to file a claim that could push rates even higher.

You manage your properties with precision. Shouldn't your insurance reward that performance?

Join Real Property Captive and turn your insurance premiums into owned equity.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

Market Snapshot

S&P 500

GSPC

7,428.78

Pct Chg:
+0.21%

FTSE NAREIT

FNER

886.87

Pct Chg:
+0.26%

10Y Treasury

TNX

4.604%

Pct Chg:
-0.037%

SOFR

30-DAY AVERAGE

3.62%

Pct Chg:
-0.00

*Data as of 07/28/2026 market close.

Next Phase

Self-Storage Investors Return as Sector Moves Beyond the Trough

After a difficult stretch, self-storage investors are returning as improving housing activity and stabilizing property values signal the sector may have passed its low point.

By the numbers: Public Storage completed its $10.5B acquisition of National Storage Affiliates Trust, while StorageMart bought 15 New York City facilities for $1B. First-half 2026 transaction volume totaled $2.8B, down from $3.8B a year earlier, but average pricing jumped 26% YoY to $123/SF, according to Yardi Matrix.

Why the market stumbled: Higher interest rates beginning in 2022 slowed home sales and moving activity, key drivers of self-storage demand. As a result, property values fell roughly 25% from their peak by the second quarter of 2025 before beginning to recover later that year, according to Nuveen Real Estate.

Investors grow more selective: While capital is flowing back into the sector, buyers are taking a more disciplined approach. Developers say they now evaluate dozens of opportunities before pursuing a single acquisition, reflecting a focus on stronger fundamentals rather than aggressive expansion.

Returns are resetting: Industry leaders say the days of pandemic-era returns are over. Double-digit rent growth and investment yields approaching 18% to 20% have given way to more sustainable expectations of 10% to 12%, as new supply and moderating rent growth reshape underwriting assumptions.

➥ THE TAKEAWAY

Next growth phase: Big-ticket acquisitions suggest institutional investors are betting on the sector's long-term resilience. As housing activity improves, self-storage could continue to benefit from stronger demand and stabilizing values.

✍️ Editor’s Picks

100% depreciation for 2026. Up to 14% cash flow: QC Capital's Car Wash Fund III: Monthly tax-free distributions, Schwab-approved, third-party audited. (sponsored)
Neocloud risks: AI-focused data center startups are fueling demand but raising financing concerns as investors question the long-term stability of their business models.
Fed uncertainty: Markets are pricing in a higher chance of a Federal Reserve rate hike as inflation pressures and rising energy costs create uncertainty for CRE financing.
Critical hires shape companies: CRE Search Partners connects commercial real estate firms with the leaders and key contributors who drive growth, strengthen culture, and execute strategy. (sponsored)
Apartment markets: NMHC’s July survey shows apartment conditions are tightening while financing remains challenging, signaling a cautious recovery for the multifamily sector.
New name: Brookfield Properties has become BGRE in a global rebranding effort as the real estate giant expands its international footprint while maintaining its operations.

🏘️ MULTIFAMILY

Concession divide: Apartment concessions declined slightly in June, but uneven regional trends show some markets relying on deeper discounts to attract renters amid supply pressure.
Density boom: Multifamily developers are increasingly delivering larger apartment projects, with high-density buildings accounting for a record share of new units in 2025.
Florida demand: Florida apartment markets beyond Miami, Orlando and Tampa are gaining national renter demand share, fueled by long-term population and household growth.
SFR slowdown: Single-family rental growth eased to 1.3% annually in May 2026, with Midwest and Northeast markets outperforming while Florida and Sun Belt areas softened.

🏭 Industrial

Demand crossover: U.S. industrial demand surpassed new supply for the first time since 2022, driving vacancy lower and signaling the early stages of the market’s next growth cycle.
Industrial surge: Mega industrial leases jumped in H1 2026 as occupiers made larger, longer-term commitments to modern distribution facilities amid stronger supply chain demand.
Rexford reset: Rexford Industrial plans up to $2B in asset sales to reduce debt and streamline its portfolio toward higher-quality industrial properties.

🏬 RETAIL

Grocery maturities: Grocery-anchored retail faces an $11.4B refinancing wave, with anchor lease expirations posing the biggest risk despite strong loan fundamentals.
Back to basics: Chili’s is prioritizing core technology upgrades over flashy AI experiments, using better systems and selective automation to improve operations and customer experience.
Albertsons reshuffle: Albertsons is reorganizing into four regions and centralizing operations as the grocery chain adapts to intensifying competition and shifting market dynamics.

🏢 OFFICE

Conversion crackdown: NYC halted another office-to-residential project at 222 Broadway after inspectors raised structural concerns during a citywide safety review, adding scrutiny to Manhattan’s conversion trend.
Office revival: U.S. office leasing reached a post-pandemic high in Q2 2026 as demand surged, vacancies declined, and premium spaces drove record rent growth.
AI reshaping: AI companies are reshaping office demand by targeting strategic markets and premium spaces, signaling a new cycle for commercial real estate.

🏨 HOSPITALITY

Sector divergence: CRE markets are splitting as office values rise while hotels, apartments, and industrial properties face declines driven by differing fundamentals.
Waterfront repositioning: Boston’s 400 Atlantic Ave. office property is for sale after a stalled hotel conversion proposal, offering redevelopment potential for hotel, residential, or office uses.

📈 CHART OF THE DAY

Apartment market sentiment reached its strongest level in four years, as demand outpaces slowing supply and occupancy continues to improve.

1,776 feet. The height references the year of American independence; at 1,776 feet to the tip of the spire, it is the tallest building in the Western Hemisphere.