While institutions are dominating investment in larger metros, private investors are quietly fueling sales activity in smaller tertiary markets where pricing is more attractive and yields are higher. Smaller metros have always provided a strong foundation of transaction activity in the self-storage sector, and there continues to be a lot of sales velocity in these…
As rents continue to soar in the Las Vegas, NV, market, self-storage investors might be wondering whether it’s worth taking a gamble on Sin City. The February 2019 self-storage report from data provider Yardi Matrix shows Vegas continues to lead the country for rent growth among metro areas with at least 1 million residents. In…
The record high levels of new supply delivered to the self-storage market last year don’t appear to be diminishing buyer appetite. According to Real Capital Analytics, transaction volume jumped to $6.16 billion last year. Even excluding a $1.3 billion entity level transaction, sales were up about 15 percent year-over-year. Development and how that supply is…
Slowly but surely, self-storage investors are taking advantage of perhaps the most buzzed-about real estate tax-saving tool of 2019 — Opportunity Zones. San Antonio, TX-based business management company DPR Investments Ltd. recently became the first investor to hop on the Opportunity Zone bandwagon in Texas with the announcement that it’s building a $16 million self-storage…
Over the last few years a new segment of the storage industry emerged: on-demand storage. The concept is fairly simple. Customers pack up their belongings and a company comes and picks them up and puts them in storage. When a customer wants something back, they use an app or website to request a delivery. The…
Nuveen Real Estate, a unit of New York City, NY-based financial services giant TIAA, has purchased a majority stake in a portfolio of 21 Morningstar Storage facilities. Financial terms weren’t disclosed. Under their new joint venture, Nuveen Real Estate owns 90 percent of the portfolio, while Morningstar Storage owns the remaining 10 percent and serves…
Investors getting whipsawed by the stock market could push to diversify more heavily into real estate in 2019, and if they do, self-storage could be the ticket for higher returns than institutional-grade property types. The Dow Jones Industrial Average (DJIA) finished 2018 down 3.5 percent and lost 13 percent of its value between October and…
On the heels of its $5.9 billion merger with one of its managed funds, W.P. Carey Inc. is mulling the sale of more than three dozen self-storage facilities that are now part of its operating portfolio. When W.P. Carey absorbed Corporate Property Associates 17 – Global Inc., one of its managed funds, on Oct. 31,…
Even after a long bull run in the self-storage investment sales market, the sector is continuing to attract new capital to the space that is helping provide a steady pipeline of activity. “Deal flow this year has been very strong with no real slow down thus far,” says James Ashley Compton, MBA, national director of…
Two related self-storage REITs, Strategic Storage Growth Trust Inc. and Strategic Storage Trust II Inc., are merging in a stock-and-debt deal valued at $340 million that would bring ownership of more than 100 self-storage facilities under one umbrella. The $12-per-share deal materialized after Strategic Storage Growth Trust explored “strategic alternatives.” The boards of the two…
