by Jane H. Sauls, CCIM
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by Jane H. Sauls, CCIM
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By now you’ve heard it. Public Storage just bought National Storage Affiliates and took back the title as the largest REIT.
If you’re thinking that doesn’t affect you, you’re wrong.
Here’s the truth.
When a REIT buys another REIT, it does not reduce the number of independent operators. That’s the good news.
The not-so-good news?
It strengthens everything that already makes them hard to compete with.
More data.
More efficiency.
Better pricing strategies.
Stronger economies of scale.
And they are not staying in the big cities.
They are moving into secondary markets.
And if they are not in your town yet, it is only a matter of time.
You are not just competing with the facility down the street anymore.
You are competing with a machine.
So… Are you ready?
This is not the time for passive ownership.
You need to know exactly where you are today if you want to control where you’re going.
Because here’s what we’re seeing across the board:
- Rent growth is barely moving
- Supply is still working through the system
- REITs are slashing rates more aggressively than independents
Translation? You are working harder for less margin.
The market isn’t broken. It’s just slow…and in some markets, it’s real slow.
There’s a lot of noise out there right now.
Most headlines just create confusion and contradiction.
Here’s the simple version:
- GDP is still growing
- Debt Delinquencies are low
- Many homeowners have no mortgage
- Job growth is flat
We are in a long bottom.
And that’s the hardest phase of any cycle.
Because nothing snaps back.
Nothing gives you a quick exit.
And if you’re losing ground, it happens slowly.
That’s what makes it dangerous.
This is where decisions get made.
This is the phase where:
- Good operators get sharper
- Average operators get exposed
- And owners start asking hard questions
How long can I hold?
What will it take to grow NOI from here?
Is my market improving… or just treading water?
Because the reality is this:
Homeownership is happening later.
Consumer behavior is shifting.
Demand isn’t disappearing.
But it is changing…. As new homes are smaller yet more expensive.
Hold? Sell? Expand?
There is no one right answer.
But there is one wrong one… Doing nothing.
At Sauls Commercial Real Estate, we are in these conversations every day.
We help owners:
- Understand what their facility is worth today
- Map out what it takes to grow NOI over the next five years
- Decide whether holding, selling, or expanding actually makes sense
The right answer is the intentional answer.
Final Thought
In a world of automation, AI, and constant change, it is easy to feel like the independent operator is getting squeezed.
Maybe so.
But I’ll leave you with something my dad always said:
“If you’re waiting on me, you’re backing up.”
Now is not the time to wait.
Push forward. Get clarity. Make a decision.
Because if you’re waiting on Sauls CRE…
you’re backing up.
Let’s Talk
If you’re even considering selling, or just want to understand your position, reply to this email.
We’ll give it to you straight.
No fluff.
No pressure.
Just real numbers and a real strategy.
STAY IN THE LOOP
