CHICAGO—The self-storage industry in general, and the big REITs active in the sector in particular, experienced a lot of growth in 2015, and so far 2016 has got off to a roaring start. That's the conclusion of MJ Partners, a Chicago-based self-storage firm. The company just released its report on the first quarter results, which says the major REITs like Public Storage saw robust increases in occupancy rates, revenues and net operating incomes.
And implied cap rates based on common share prices have sunk to record lows, ranging from 3.7% for Public Storage and Extra Space Storage, the two biggest players in the sector, and between 4.0% and 5.4% for others like CubeSmart and National Storage Affiliates.
But the new year has also brought some changes. The REITs are acquiring more properties than they did one year ago, an important factor since self-storage still has thousands of less-sophisticated Mom-and-Pop operators. And some of the REITs are beginning to respond to the healthy demand by accelerating the development of new properties.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
