The Underline: Is it Over Yet

IS IT OVER YET?

A market check for self storage owners

It’s been a ride.

In 2019, investor focus was shifting to secondary and tertiary markets. Unmanned operations were gaining traction, and tech adoption was accelerating.

Then COVID hit.

Families moved outward, remote work exploded, and interest rates dropped to historic lows. Home prices surged, people sold fast, and storage demand soared. Waiting lists became the norm. Street rates jumped. According to Green Street, storage values climbed 64% from March 2020 to March 2022.

But then, almost overnight, interest rates spiked. Deals no longer penciled. Homeowners stopped moving. Storage demand cooled. Rates softened. Discounts returned. And yes—values dropped. Green Street estimates a 30% decline since the peak.

Now comes the churn. The wave of pandemic-era customers is moving out. That’s the business.

SO… IS IT OVER?

Most believe the worst is behind us. On the whole, we agree.

But self storage is a hyper-local business. Performance can vary dramatically from one zip code—or even a few miles—to the next. That’s why the better question is:

Where are you trying to go from here?

If you missed the 2022 peak, you may be wondering: If I hold, it’ll be worth more in a year or two… right?

Here’s the truth:
Self storage values are based on two things—your income stream and current economic conditions.

If your market is facing increased supply and rental pressure, and interest rates stay where they are or only come down slightly, then “holding” may actually erode value in the short term.

If your strategy is to exit in the next few years, it’s critical to evaluate both your local market fundamentals and the broader economic landscape. It’s no longer about what your property was worth in 2022. What matters is where it stands today—and where it could be tomorrow.