July 29, 2026
You have probably noticed self-storage popping back up in the headlines. After a rough few years, the sector is starting to look attractive again, and some very large players are putting real money behind that belief.
To understand why this recovery is such a big deal, it helps to remember how we got here. When interest rates started climbing in 2022, it did more than make mortgages more expensive. It slowed down home sales and household moves across the country, and moving activity happens to be one of the biggest drivers of self-storage demand.
Fewer people moving meant fewer people renting storage units, and that softness showed up directly in property values. Self-storage values dropped roughly 25% from their peak by the second quarter of 2025, based on data from Nuveen Real Estate, before finally beginning to recover later that year. That is a steep drop, and it explains why so many investors sat on the sidelines for a while.
The short answer is that housing activity is improving and values appear to have found their floor. Two major acquisitions have put self-storage back in the spotlight this year. Public Storage completed a $10.5 billion purchase of National Storage Affiliates Trust, and StorageMart bought 15 New York City facilities for $1 billion. Deals of that size do not happen because a handful of buyers are feeling nostalgic. They happen because sophisticated institutional investors have run the numbers and concluded the downside risk has largely played out.
That said, the overall numbers still tell a more nuanced story. First-half 2026 transaction volume across the sector totaled $2.8 billion, actually down from $3.8 billion a year earlier, according to Yardi Matrix data. Yet average pricing jumped 26% year over year to $123 per square foot. In plain terms, fewer deals are happening overall, but the ones that are closing are commanding noticeably higher prices per square foot. That is a classic sign of a market that has separated the strong assets from the weak ones, with buyers willing to pay up for quality.
Probably not, and it is worth resetting expectations here. Industry leaders are pretty clear that the days of pandemic-era returns are over. Double-digit rent growth and investment yields approaching 18% to 20% have given way to more sustainable expectations in the 10% to 12% range, as new supply and moderating rent growth reshape how deals get underwritten. A 10% to 12% return is still a solid outcome for most investors. It is just a more realistic, sustainable number than what the sector briefly saw during the height of the pandemic moving boom.
If you have been curious about self-storage as an investment, or you own property near a facility that might be attractive to a buyer, this recovery is worth paying attention to. Big institutional money returning to a sector is often an early signal that broader confidence is building, and it can create opportunities for smaller investors who move thoughtfully rather than chasing headlines. As always, the fundamentals still matter most: location, occupancy trends in your specific market, and realistic return expectations.
Disclaimer: This content is intended for informational and educational purposes only and is not intended to be construed as legal, tax, financial, or insurance advice. Every property and tax situation is unique. Please consult a licensed attorney, CPA, or tax professional regarding your specific circumstances before making any decisions related to property improvements, tax assessments, or real estate transactions. Mohammed M. Rahman is a licensed real estate broker in New York. Contact: Mo@ClosedByMo.com.
