Dream Storage Newsletter - January 2025

Monthly Newsletter

In our January newsletter, we start the year by exploring industry sentiment and expectations for 2025.

Market Insights

We kicked off the new year by regrouping and reconnecting with industry contacts, many of whom attended a regional conference in New York and an executive ski workshop in Big Sky. According to our broker contacts, 2024 was slower than 2023 for most, and while they are eager to gain momentum in 2025, few anticipate a record-setting year.

Some sellers, particularly developers who have struggled to lease up new buildings or achieve market rates over the past two years, are facing tough decisions and exploring sale options. However, many owners with a low basis and/or favorable debt are holding steady.

The recent presidential transition has sparked speculation about whether forth coming tax incentives and rate cuts will stimulate commercial real estate activity—particularly in self-storage. Yet, after years of challenging trends, many remain on the sidelines, hesitant to make predictions.

Dream Storage’s Outlook

We remain cautiously optimistic—an essential mindset in today’s challenging environment as entrepreneurs focused on growth. Adapting to market conditions, we continuously reassess our strategy and expand our scope, whether by exploring new geographic regions or considering value-add opportunities that we might have previously overlooked. For example, we are now evaluating Class-A facilities in top 25 MSAs with distressed developers.

At the same time, we remain committed to the core strategies that have driven our success, even if that means periods of limited activity. Striking this balance between adaptability and discipline is key to navigating an uncertain market.

Thank you for your continued interest and support.

The Dream Team