- Heitman launched a new core-plus self-storage strategy backed by $275M in commitments and another $200M in co-investment capital.
- The Chicago-based investment manager seeded the strategy with 79 self-storage assets totaling roughly 4.9M SF across 16 states.
- The move signals growing institutional confidence in self-storage as declining new supply and below-replacement-cost pricing create buying opportunities.
Chicago-based Heitman is expanding deeper into the self-storage sector with the launch of a new core-plus investment strategy backed by nearly half a billion dollars in capital commitments and co-investment. Bisnow reports the firm unveiled the platform Tuesday alongside the acquisition of a 79-property self-storage portfolio spanning 16 states.
The strategy launches with $275M in commitments and an additional $200M in co-investment capital, giving Heitman roughly $475M of buying power out of the gate. The portfolio includes approximately 4.9M SF of self-storage space across a mix of stabilized, lease-up, and development-stage assets.
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Institutional Capital Targets Self-Storage
Heitman’s move comes as institutional capital continues flowing into self-storage despite softer rent growth over the past two years. Investors increasingly view the sector as a defensive asset class thanks to its relatively low operating costs, flexible pricing structure, and demand drivers tied to life events like moving, downsizing, and household formation.
The timing also reflects changing market conditions. Higher interest rates and slower transaction activity have pressured asset values across commercial real estate, creating acquisition opportunities for well-capitalized buyers. Self-storage development has also slowed materially as financing costs and construction expenses remain elevated.
The Details
Heitman said the strategy will focus on generating both current cash flow and long-term appreciation through a diversified portfolio approach. The firm plans to target stabilized assets alongside lease-up and development opportunities across US markets.
Jen Boss, Heitman’s head of portfolio management and portfolio manager for the strategy, said current market conditions present an attractive entry point for investors. In a company statement, Boss noted that many self-storage properties are trading below replacement cost while market rents remain below the levels needed to justify significant new construction activity.
The acquisition gives Heitman immediate scale in the sector with geographic diversification across 16 states. The company did not disclose the seller or the purchase price tied to the seed portfolio.
Why Self-Storage Still Attracts Capital
The self-storage sector has cooled from the record-setting rent growth seen during the pandemic-era housing boom, but many institutional investors still see favorable long-term fundamentals. According to CBRE’s 2026 US Self Storage Outlook, new supply deliveries are expected to moderate this year after a wave of development activity peaked in 2023 and 2024.
That slowdown matters because supply growth has weighed on occupancy and rental rates in several Sun Belt and secondary markets. As development pipelines thin, operators and investors expect fundamentals to stabilize over the next several quarters.
Institutional appetite for the asset class has also broadened over the past decade. Large investment managers, REITs, and private equity firms continue targeting self-storage portfolios. The sector has also maintained steady demand through economic slowdowns because tenants often need storage during major life transitions. Operators have also adopted more technology-driven pricing and management systems.
Why It Matters
Heitman’s launch shows investors shifting capital toward resilient property sectors. Many investors now avoid sectors facing heavy office market volatility. Office and some multifamily assets still face refinancing pressure and falling valuations. Meanwhile, self-storage continues attracting large institutional capital commitments.
The strategy also reflects growing interest in fragmented property sectors. Thousands of self-storage facilities still belong to smaller private operators. Institutional investors see opportunities to build scale through portfolio acquisitions. Larger platforms can improve operating efficiency and strengthen revenue management systems.
What’s Next
Heitman is expected to continue expanding the platform through additional acquisitions and selective development opportunities as market pricing resets. Investors will be watching whether declining construction activity and improving supply-demand dynamics help reignite rent growth in late 2026 and 2027.
The broader self-storage market may also see more institutional consolidation if borrowing costs ease and transaction volume rebounds. For now, firms with available capital appear positioned to capitalize on pricing dislocation while competition remains muted.
