Dream Storage Newsletter - July 2025

Monthly Newsletter

This month’s newsletter features key industry insights from top storage executives, following a conference Rachel attended earlier in July.

Market Insights

Earlier this month, Rachel attended the California Self Storage Association's annual Owners Summit. This conference is known for featuring some of the most informative panels in the industry, with CEOs of major companies discussing current challenges and market outlooks. On the regulatory side, several of our industry advocates noted that SB-709 (the California bill directly targeting storage covered in previous newsletters) is just the beginning. Regulatory bodies appear increasingly focused on limiting some of the most powerful tools available to storage owners, particularly the ability to raise rates.

During the CEO Super Session, Joe Margolis (Extra Space) and Bill Hobin (StorQuest) discussed the challenges facing markets that experienced several years of new development, and whether those markets can successfully absorb the additional supply. While many attribute softening occupancy and declining rates to a slower housing market, Margolis highlighted that 58% of new customers are still renting units due to a move. This is a modest decline from 63% in past years with stronger occupancy, suggesting that the downturn cannot be explained solely by fewer people relocating.

Various panelists emphasized that broader macroeconomic pressures are making it harder for consumers to justify renting storage units at current or increased rates. In addition, some markets are still absorbing recent supply increases, while others may be structurally oversupplied and unlikely to recover fully.

Despite these headwinds, panelists expressed general optimism. Some pointed to the industry’s resilience compared to other asset classes, and others pointed out that the millennial generation is the largest user demographic for storage. This is an encouraging sign that the next generation of consumers continues to adopt and rely on the asset class.

Dream Storage’s Outlook

The storage industry has taken some heavy hits over the past three years. While it has not returned to the record highs of previous years, occupancy levels appear to be stabilizing, and rate declines have largely leveled off. Consumers are feeling increased financial pressure, and although storage remains a necessity for some during major life events, others are beginning to scale back if they see it as a discretionary expense. The industry is not immune to macroeconomic forces, but the asset class continues to demonstrate resilience during periods of volatility. We remain confident in the long-term value of storage and are actively exploring new investment opportunities.

As always, thank you for following along!

Dream Storage