- Dream Storage Newsletter
- Posts
- Dream Storage Newsletter - March 2024
Dream Storage Newsletter - March 2024
Market Insights and Company Outlook
Monthly Newsletter
The market is showing signs of heating up with an influx of opportunities coming to market. There is considerable interest in the self-storage sector, and offer prices remain competitive. While this is positive for the industry, it presents challenges for buyers. To address this, we have begun reaching out to owners directly to ramp up the number of solicited and unsolicited offers we send out each week.
Next week, we will be attending an industry conference where we will reconnect with old acquaintances and forge new connections. We are eager to gather general feedback and provide insights into the overall sentiment in our upcoming newsletter.
Market Insights
Industry leaders are cautiously optimistic as we enter the 2024 leasing season. Street rates have stayed low through the end of 2023 and into early 2024 as storage operators compete for higher occupancies. However, many REITs have faced criticism for contributing to a "race to the bottom" by slashing street rates and manipulating markets, with the expectation of making up for it through significant rental rate increases later in a customer's tenancy. There is hope among industry players that these predatory pricing strategies will subside as we move into Q2.
With the Federal Reserve's announcement of a planned rate decrease, there is optimism that this will stimulate activity in the housing market. This, in turn, has a positive impact on the storage industry as the movement of people and goods creates a demand for storage services.
Dream Storage’s Outlook
At Dream Storage, we continuously refine our strategy to adapt to the dynamic market landscape. Our focus remains on acquiring value-add opportunities, and our approach to identifying these opportunities is an evolving process. We have placed significant emphasis on off-market research and direct outreach to sellers to reduce competition and secure properties at prices aligned with market conditions. Stay tuned for upcoming investment opportunities. We appreciate your ongoing trust in our process.
The Dream Team