Transforming the Self-Storage Sector

CHICAGO—Storage companies have begun attracting more interest lately, and some say real estate investors should consider these properties on par with vital sectors like medical office buildings or student housing. And at REITWeek 2013: NAREIT‘s Investor Forum, held this week in Chicago, officials from Public Storage Inc., the nation’s largest self-storage firm, explained some of the key reasons for their sector’s strength.

Every year, for example, between February and August, most storage firms send out rental increases, usually a few percentage points, to long-term customers. But John Reyes, Public Storage’s chief financial officer, told conference-goers that this year they were hitting customers with rental increases of up to 8.5 percent.