CHICAGO—The nation's largest self-storage REITs continue to rackup impressive gains in revenue and occupancy, according to thelatest overview of the industry just published by MJPartners, a Chicago-based firm. But this remarkable run ofgood news has still not kicked off a commensurate level of newconstruction, and the implied cap rates for these properties haveyet again sunk to historic lows.
“On average, the cap rates for properties in the best locationshave declined 25 bps in just the last 90 days,” Marc A.Boorstein, a principal of MJ Partners, tells GlobeSt.com.“You've got low risk and great returns. And that does not appear tobe coming to an end. I meet a new private equity group consideringself-storage at least once a week. It's amazing and investors wantin.”
The publicly-listed REIT Public Storage, thelargest storage firm with 2,200 US sites, had an implied cap rateof just 4.3%. Rates for Extra Space Storage,CubeSmart and SovranSelf-Storage, the other major operators, were between 4.9%and 6.2%.
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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.
