Dream Storage Newsletter - December 2024

Monthly Newsletter

In our December newsletter, we reflect on the past year and look ahead to opportunities in 2025.

Market Insights

This year was similar to 2023 in many ways. Both years were characterized by low transaction volumes, softening industry fundamentals, and strong interest from the investment community.

While it was another challenging year for buyers and sellers, the self-storage industry remained resilient as operators were able to maintain occupancies and revenues. How the industry continues to perform in the face of rising insurance, payroll, and property tax costs next year will be closely watched.

Despite some remaining uncertainty, the industry is on better footing than a year ago as the rate of decline in asking rents has slowed significantly and occupancy levels have held steady. Additionally, investor interest ranging from individuals to institutional groups remains elevated which continues to support asset values.

Dream Storage’s Outlook

While the last two years have felt like navigating a dark room filled with obstacles, the continued stabilization of industry operating fundamentals is beginning to illuminate the path forward. If street rents have hit bottom and the lows are behind us, we should find healthy entry points in the market in the coming year as clarity in underwriting will help buyers and sellers find a middle ground.

Have a safe and happy holiday season!

The Dream Team