Why self-storage is one of the hottest sectors in real estate
“The remarkable exceptionality of this quarter’s numbers is thanks to a combination of the sector’s typical cyclicality, which favors the second quarter, as well as the pandemic-induced macroeconomic landscape which has propelled migration shifts to an extent not seen in decades. As much of the summer falls in the third quarter, we can expect to see continued strength in the sector as lifestyle and demographic changes brought on by the increased acceptance of remote work will continue to benefit this sector through the rest of the year as people have suddenly found themselves more mobile and with both a stronger desire and ability to relocate.”
Among them: CubeSmart, based in Pennsylvania; Life Storage Inc., based in Buffalo, N.Y.; Extra Space Storage Inc. in Salt Lake City; National Storage Affiliates of Greenwood Village, Colo.; and Global Self Storage Inc., based in New York City.
“Even though REITs have bought up a bunch of properties, while all of this has been going on, the REITs for awhile, pre-pandemic, took a back seat because they thought pricing was getting a little out of hand,” Pogoda said.
Posted By: Crain’s Detroit Business on October 12, 2021. For more information, please click here to read the source article.
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