Pocketing Big Bucks with Self Storage: The Treasure Chest even Pirates Don't Know About
If real estate is a Monopoly, then self-storage is that obscure rule no one follows. Rules are made to be broken, right? Discover how self-storage is a dependable player in the alternative investment league.
Brace Yourself for Self Storage: Not Just Your Grandma's Attic Anymore!
The Big Idea:
The attached blog post, kindly shared by Gretchen Shoenberger, unveils the steady climb of alternative sectors, notably self-storage, in Commercial Real Estate (CRE) investments. From playing second fiddle to proudly proclaiming a solid 39% share of investment from 2020 to 2023, these alternatives know how to celebrate their time in the sun. Click here to read the complete analysis.
Say Hello to the Unlikely Protagonist: Self Storage
Alternatives in CRE have shown a staggering 79% rise in transaction volumes, translating to $289 billion from 2020 to 2023. And boy, did self-storage play a starring role! It's kind of like the black sheep of the family who ends up saving the day. And guess what's the casting call for this dramatic upturn? A mix of migration, home downsizing, and key life milestones (Did I hear 'forever emptiness' and 'endless togetherness'?). Oh, and not to forget the unexpected guest, Covid-19, who pushed everyone towards safer spaces (read: self-storage).
Winning Against the Odds
Despite facing a 57% drop in transaction volume within the first half of 2023, self-storage is riding a sophisticated wave like a stubborn surfer, keeping its trade levels above pre-pandemic standards. Even with rising debt costs, the capitalization rates are holding their stand at an average of 5.1%, which is only a mere ten bps higher from the all-time lows.
Why the Saints and Sinners are Knocking at Self Storage's Door
Despite the economic slowdown casting its mystique over various sectors, self-storage maintains strong performance indicators, with occupancy rates exceeding 90% nationally.
Our Take on the Unexpected Dark Horse of CRE
Think self-storage is the unwanted chip in your bag of savvy investments? A hint of sarcasm there, yes? Laced with facts and figures, the full report will convince you otherwise. It's time to open your eyes (and wallets) to the promising realm of alternative investments in the CRE.
Click Here to dive into the entire ocean of insights into the alternatives carving out a winning notch in CRE investments. Feel free to contact the PR Specialist, Gretchen Shoenberger, if you have any flaming questions or are craving a chitchat with the researchers.
🔒📚 Hi! I'm Eric Manning, a self-storage operations wizard and lifelong learner. 🗝️ My articles blend industry know-how with a dash of humor and wisdom. Whether you're a storage newbie or a pro, join me as we explore the world of storage, one witty insight at a time! 📦😊🔑