The self-storage sector is believed resilient to inflation and has countercyclical renter-demand factors, driven by relocation, ongoing population growth, and homeownership hurdles. The latest supply wave, which occurred in 2016-19, expanded the existing storage stock by 18% cumulatively. This supply has since been absorbed and new development activity over the next 12 months remains subdued. As a result, supply forecasts for 2027 and 2028 have been reduced by 120bps and 50bps, respectively.
Over the long run, storage revenues have followed the trend of personal consumption, which is still on the rise, suggesting the utilisation of storage may climb higher in the coming years despite concerns of industry maturation. Finally, while asking rates have declined year-over-year, occupancy and NOI growth remain positive, bolstered by higher and quicker existing customer rates increases, a rental strategy that has become widely adopted within the industry.
COMPLIANCE STATEMENT
The information contained herein is for illustrative purposes only and is intended for qualified investors and is not to be construed as an offer, solicitation, or recommendation with respect to the purchase or sale of any security and is not intended to constitute and may not be relied upon for legal, tax, or accounting advice. Investors should consult their legal, tax counsel, to determine which opportunity is best for their investment. The information shown is considered to be accurate as of the date of delivery or as otherwise indicated in the material, and CHC has no obligation to disseminate any updates or revisions to any information contained herein. Certain information in these materials may be deemed to constitute “forward-looking statements, which are necessarily based upon speculation, expectations, projections, and assumptions that are inherently unreliable and subject to certain significant business, economic, market, and competitive uncertainties and contingencies. Sources can be provided upon request.
