by Jane H. Sauls, CCIM
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by Jane H. Sauls, CCIM
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Comparison is a thief…
That may sound like an odd statement coming from someone whose profession is built on comparisons. As commercial real estate professionals, we compare sales, rental rates, occupancy, cap rates, expenses, construction costs, and market trends every single day. Without comparisons, there would be no valuations.
So hear me out.
Comparison isn’t the problem.
Comparison gives us perspective.
The problem comes when we compare emotionally instead of objectively.
Many self-storage owners are still comparing today’s market to the peak of 2022. They remember waiting lists, record-high valuations, historically low interest rates, and buyers competing for every quality facility.
That market was real.
It was also extraordinary.
Today’s market is different, and that’s okay. Every real estate cycle eventually changes. The owners who create long-term wealth aren’t the ones who spend years wishing for yesterday’s market to return. They’re the ones who recognize today’s market for what it is and position themselves to succeed within it.
Here’s what has changed:
| THEN Early 2022 | Â | NOW Mid 2026 |
| Self-storage values reached record highs |
→
|
Values remain approximately 21% below peak, though showing signs of stabilization |
| Historically low interest rates |
→
|
Borrowing costs remain significantly higher with tighter underwriting |
| Waiting lists were common |
→
|
Operators are competing harder for every rental |
| Monthly rent increases became the norm |
→
|
Rental rates have stabilized or declined, with pricing pressure in many markets |
| Developers couldn't build fast enough |
→
|
New supply has slowed dramatically as financing and construction costs increased |
| Buyers focused on future growth |
→
|
Buyers focus on sustainable NOI and operational discipline |
| Rising market values benefited nearly every owner |
→
|
Strong operators continue separating themselves from the market |
| Revenue growth outpaced expense growth |
→
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Expense growth often outpaces revenue growth |
| The market will make me money |
→
|
My operations create value |
Let’s not sugarcoat it. For most owners, today’s market is tougher than it was four years ago. Revenue growth has slowed while operating costs continue to climb, financing is more expensive, and buyers are underwriting more conservatively. That’s the reality. The good news is that disciplined operators can still create value by focusing on the things they control.
What are you doing today to make your property more valuable regardless of what the market does?
That’s the question every owner must answer, regardless of where interest rates or the economy go next. Markets will recover, cap rates will move, and construction activity will eventually find its balance again. Those cycles have always been part of commercial real estate and always will be.
What you can control is how your property performs while the market is changing.
You shouldn’t spend time comparing your business to April 2022. Instead, compare it to where it was six months ago. Are collections improving? Are expenses growing more slowly than revenue? Is occupancy moving in the right direction? Have you improved your customer experience, strengthened your online presence, and increased tenant retention? Would your lender have more confidence in your operation today than they did six months ago? Would a buyer?
Those are the comparisons that build value because they’re focused on progress, not nostalgia.
The owners who consistently outperform the market aren’t the ones who predict the next cycle. They’re the ones who continually improve their operations regardless of the cycle. That’s why I encourage owners to stop comparing themselves to a market that no longer exists and start comparing themselves to the business they were running six months ago.
That’s how lasting value is built.
One final thought.
In today’s market, owners can’t afford not to know what their facility is worth.
Whether you’re planning to refinance in the next 24 months, considering improvements, simply curious where you stand, or planning exit strategy, understanding your property’s current market value is one of the most important business decisions you can make.
Too often, owners rely on outdated assumptions, conversations with neighbors, or values from a market that no longer exists. The market has changed, and your strategy should be built on today’s realities … not yesterday’s headlines.
At Sauls Commercial Real Estate, those are the conversations we have every day. Our team specializes in helping owners understand where their property stands today, what is driving its value, and what practical steps can be taken to strengthen that value over time.
Whether your next decision is six months away or six years away, we’re here to help you make it with confidence.
| Â | April 2019 | April 2022 | May 2026 | Prior Month | Current Month |
|---|---|---|---|---|---|
| US Regular Gasoline Prices ($ per gallon) | 2.69 | 4.17 | 4.48 | 3.83 | 4.08 |
| Price of Eggs (per dozen) | 1.55 | 2.52 | 6.22 | 2.19 | 2.14 |
| Whole Milk ($ per gallon) | 2.98 | 4.01 | 4.13 | 4.2 | 4.2 |
| 10-Year Treasury | 2.53 | 2.75 | 4.48 | 4.47 | 4.6 |
| Prime Loan Rate | 5.5 | 3.5 | 6.75 | 6.75 | 6.75 |
| 30-Year Mortgage | 4.08 | 5% | 6.53 | 6.49 | 6.69 |
STAY IN THE LOOP
