REITs Gearing Up for Self-Storage Acquisitions

An Extra Space storage facility at 5828 Howard St., Skokie, IL.

CHICAGO—Not long ago, revenue growth for the self-storage sector was off the charts. That led to a robust level of acquisitions, especially by the five major public REITs that lead the industry. That growth has leveled off, but strong demand throughout self-storage continues to fuel expansion, as well as attract new private equity into the space. Furthermore, after a relatively quiet period, the public REITs are most likely gearing up for another round of acquisitions in the near future.

Chicago-based MJ Partners, a self-storage firm, just published its latest analysis of the sector, and found that in the second quarter the REITs, including Public Storage and Extra Space Storage, generated same-store revenue growth ranging from 1.5% to 4.1%. Although these numbers once ranged from around seven to nearly ten percent, experts say the present rates are satisfying.