CHICAGO—MJ Partners just published its latestquarterly overview of the self-storage industry, and once again thestudy shows that the top four self-storage REITs in the sector havemaintained very healthy levels of occupancy and rental increases.Furthermore, cap rates for the properties can't seem to stopfalling as investors compete for acquisitions and new developmentcan't seem to get started.
“In the last 12 months, the cap rates have fallen about 100bps,” Marc A. Boorstein, a principal ofChicago-based firm, tells GlobeSt.com. “And we thought the rateswere aggressive 12 months ago. But there's still not a lot of newdevelopment in the business.”
The publicly-listed REIT Public Storage, thelargest storage firm with 2,200 US sites, had an implied cap rateof just 4.3%. Extra Space Storage,CubeSmart and Sovran Self-Storagewere between 5.1% and 6.4%.
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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.
