6 Jul, 2021

Self-storage REITs outpace other REIT sectors

The pandemic changed everything including where and how people live. For instance, I moved from Illinois to Georgia as thousands leave high tax states for low tax states. Public Storage and other self-storage REITs are booming as people need somewhere to store their stuff during uncertain times.

“Self-storage thrives when people experience change, and Covid disrupted norms across all generations, “ said Drew Dolan, principal at DXD Capital, a self-storage developer and investor. He added that many customers who needed self-storage in 2020 were first-time customers.

Operators moved quickly during the pandemic to offer customers more choices for reservation and move-ins, including online rental agreements and kiosks that limited contact with other people.

“What used to be a 45-minute transaction can now be a six-minute experience,” said Natalia N. Johnson, chief administrative officer of Public Storage, in a recent presentation to investors. In April, the Glendale, Calif,-based self-storage company known for its orange doors, acquired a portfolio of 48 properties for $1.8 billion in Washington, D.C., Virginia and Maryland. CubeSmart and Extra Space Storage Inc. added dozens of locations to their portfolios this year.

Wall Street Journal
Image by Paul Brennan from Pixabay

About : Kevin Bae

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