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Self Storage Deals Still Getting Done, They're Just Different Now
October 02, 2023
There is still a need for more storage in the U.S., so deals are out there and they will get done, according to Steven Weinstock, National Director, Self Storage Division, Marcus & Millichap. Speaking during his firm’s news video, Weinstock said Americans like stuff. “And last I checked, we’re not buying less, we’re buying more, and we need a place to put it,” he said.
Several big billion-dollar deals with hundreds, if not thousands of properties across the United States took place recently, but opportunities remain, Weinstock said.
“There are a lot of 10-, 20-, 50-unit portfolio owners out there,” he said. “And as they continue to grow, that creates an opportunity for even the smaller owners to sell up or an opportunity for a smaller owner themselves to acquire and grow their portfolio.”
He said cap rates year over year have gone up 75 to a hundred basis points and in some situations is becoming negative leverage – meaning that they’re borrowing money at a cost that is higher than the return that they’re getting.
Weinstock said deals still getting done, they’re just different now.
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Several big billion-dollar deals with hundreds, if not thousands of properties across the United States took place recently, but opportunities remain, Weinstock said.
“There are a lot of 10-, 20-, 50-unit portfolio owners out there,” he said. “And as they continue to grow, that creates an opportunity for even the smaller owners to sell up or an opportunity for a smaller owner themselves to acquire and grow their portfolio.”
He said cap rates year over year have gone up 75 to a hundred basis points and in some situations is becoming negative leverage – meaning that they’re borrowing money at a cost that is higher than the return that they’re getting.
Weinstock said deals still getting done, they’re just different now.
