Creative opportunities in the sector will be discussed during March 1 online event
SANTA BARBARA, Calif., Feb. 28, 2023 – The self storage market, typically a haven for savvy investors, experienced uncertainty last quarter. Despite recording its second-highest annual sales total in 2022, sales volume dropped sharply to close out 2022. Self storage investment activity is expected to remain light in the near-term due to uncertainty in pricing and yields.
Self storage property sales totaled $10.0 billion in 2022, down 18.7 percent from $12.3 billion in 2021 – which was the all-time high.
“Despite the decline, sales activity was more than double any year prior to 2021. Institutional investor demand has grown in recent years, owing to the sector’s high returns relative to other property segments over the last two decades, recent strong fundamentals performance, and the prospects for growth,” says the latest Yardi® Matrix Self Storage Transaction Bulletin.
Self storage sales rose through the third quarter of 2022, totaling $2.6 billion in 1Q 2022, $2.8 billion in 2Q 2022 and $3.0 billion in 3Q 2022 before dropping to $1.7 billion in the fourth quarter.
Some would-be sellers are content to collect dividends until prices move up again. “If the market improves, sellers will come back out,” said one industry executive.
Interested in hearing the latest expert insight on rents, development and investment in self storage? Be sure to join us for the March 1 self storage webinar – free to join and everyone is welcome. Register here.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.