Self-Storage To Rebound This Year?
Total returns for the self-storage sector were down 8.14% in 2016, but experts project the market will rebound this year.
Self-storage construction rose to $2B last year, almost double the value from 2015, and Green Street analysts said that surge in construction should not trigger an absorption problem because supply is still below historic levels, National Real Estate Investor reports. Self-storage rents are poised to grow this year, and Green Street said new rents advanced an average 1.7% in January.
While investors hope self-storage REITs will regain their former glory (the sector enjoyed total returns of 40.6% at the end of 2015), Public Storage recently missed Wall Street estimates in its first-quarter earnings report, though the largest self-storage REIT in the country did post strong year-to-year growth, signaling future strength in the sector.