Dream Storage Newsletter

Monthly Newsletter

We had the pleasure of attending the industry’s largest conference at the start of the month. As we take a look back at September in this edition of the Dream Storage newsletter, we share insights gathered from our conversations with brokers and peers at the event.

Market Insights

During conversations with brokers and buyers at the September conference, it became clear that everyone is eager to close deals before the year's end. Capital has been sidelined for too long, and buyers are keen to add facilities to their pipelines. The industry grew more optimistic as a significant number of deals came to market leading up to and following the conference - a sign that sellers have started to adjust to the current pricing landscape.

As many predicted (both at the conference and industry wide), the Fed announced a 50 basis point rate cut at their September meeting, injecting momentum into an otherwise stagnant transaction market. While this cut doesn’t dramatically alter the challenging cost of debt, it has indicated to many real estate investors that now might be the best time to transact in the foreseeable future.

We’ve observed two schools of thought following this rate cut. One camp believes that rates will drop only to rise again in 2025, while the other sees this as the beginning of a gradual decline in rates. Regardless of their perspectives, both camps are eager to buy by the end of the year. The first group views this as an ideal opportunity to secure a relatively low interest rate, while the second believes that as rates decline, market prices and seller expectations will increase, making now the best time to purchase properties at a favorable basis.

Dream Storage’s Outlook

In the weeks leading up to and following the conference, we’ve noticed an increase in deals coming to market, with many buyers eager to close before the year’s end. While we continue to pursue off-market opportunities, we’ve been pleasantly surprised by the number of deals available and remain optimistic about building our portfolio in the coming months. We look forward to sharing future opportunities with you all.

The Dream Team