Investors Bullish on Self-Storage

Self-storage facilities are benefiting from a strengthening economy, as tight supply and low vacancy rates have caused rents to increase at many properties. Investors looking to lock in stable returns are taking notice. Self-storage operator Westport Properties Inc. recently purchased a 97K SF facility in Orlando for $11.8M, outbidding several other potential purchasers ncluding several REITs. The sale price of about $121 per SF represents a significant premium for the seller, Vista Self Storage Co., as the average going rate for Orlando self-storage facilities has been about $100 per SF. Self-storage REITs returned 31% last year compared to 28% for all equity REITs and 14% for the S&P 500. Westport owns or operates 85 self-storage properties across the US. [WSJ]

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