HOW THE NEXT MARKET CORRECTION COULD IMPACT THE SELF-STORAGE INDUSTRY

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Hello! My colleague, Al Harris, wrote this really insightful article last week and I wanted to share an excerpt of it here with you all as a resource. 

I hope you'll find it as valuable and informative as I did   ~Amy C.

LINK TO THE FULL ARTICLE ON THE STORABLE WEBSITE

What would a market correction mean for the self-storage industry?

Self-storage has seen its ups and downs before. During the 2008 crash, the industry proved its recession-resilient bonafides and came out of the downturn stronger than ever.

Another hit came in mid-2020 with the arrival of COVID-19, but self-storage has been on a rally since the initial shock of the pandemic response wore off. 

But there are some signs that tougher times could be ahead. One sign is the recent selloff of publicly-traded self-storage stocks following the Q1 2022 earnings, which suggests that investors’ enthusiasm for the sector is waning in light of the overall macroeconomic landscape.

The recent self-storage sector slump coincides with an overall slide in the REIT sector of 15 percent since the start of the year, however fundamentals in storage are strong. The Big 5 storage REITs command record-high occupancies going into the spring leasing season, and rental rates appear to be holding firm near record highs. However, overall fears of a recession is making some investors skittish—and some may feel that the COVID-19 boost enjoyed by the sector is coming to an end.

LINK TO THE FULL ARTICLE ON THE STORABLE WEBSITE