Self-storage followed the trajectory of many asset classes during the pandemic, according to Evan Hudson, a real estate partner at law firm Stroock & Stroock. At the beginning, it performed poorly, and then robustly. While a few factors contributed the strong performance, migration to new markets certainly helped.

"In the case of self-storage, the performance reflects fundamentals," Hudson tells GlobeSt.com. "More people are moving, especially from dense urban cores to the periphery. As they move about, they need a place to stash their stuff." Hudson adds that enhanced unemployment benefits and bond purchases by the Fed helped to increase the money supply, helping to drive the price of financial assets overall, although this was not unique to self storage.

Before the pandemic, self-storage was becoming oversupplied in select markets. However, construction activity waned during the pandemic, helping to offset construction concerns. Construction costs and challenges have also slowed construction activity, which has been a boon for existing owners. "the cost to develop new properties has increased, since contractors are dealing with the same supply chain problems as everyone else. "The cost to develop new properties has increased, since contractors are dealing with the same supply chain problems as everyone else. One silver lining to the supply chain disruptions is that your competitors are also having a harder time building new product. For that and other reasons, supply growth is slowing," says Hudson.