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Los AngelesThe self-storage and multifamily markets are interconnected. They are both driven by demand for multifamily and shrinking home sizes in cities, and investors in both asset classes follow a similar set of metrics, from employment to income growth, to determine a profitable submarket.

“I think that the metrics that drive demand for multifamily are very similar to the metrics that drive the profitability of the self-storage market,” Hunter Thompson, CEO of Cash Flow Connections, tells GlobeSt.com. “For example, we are looking for population growth; we are looking for income growth; we are looking for a diversified amount of employers; and we are looking for stability in the economy from a big picture.”

While the metrics are similar, Thompson doesn’t pay much attention to the specific market activity, however. He says that trends in multifamily do not necessarily carry over to the self-storage industry. “Going down to the nitty-gritty, when you look at the differential between B-class apartments and nearby single-family houses, that is not something that we pay close attention to,” says Thompson. “That would be industry-specific, in my opinion.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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