Dream Storage Newsletter - November 2024

Monthly Newsletter

In our November newsletter, we discuss industry sentiment and provide an update on our company as we near the end of what has been a challenging year.

Market Insights

Despite Q3 reports from all the major REITs showing steady occupancy but declining revenues, many industry experts remain optimistic about the self-storage sector's performance looking ahead to 2025. A key point of optimism is the stabilization in occupancy levels, which presents an opportunity to begin increasing rental rates. Additionally, with indications that interest rates will continue to decrease, many owners and buyers are hopeful that the expected rise in home sales will serve as a catalyst for both occupancy and rent growth in the self-storage industry.

Sophisticated capital, both from the purchasing and debt sides, continues to flow into the storage space. According to one leading brokerage firm, their last six deals attracted an average of 15 offers each.

Large investment funds are actively raising capital, with many having launched in the past six months and planning to aggressively enter the self-storage market. While the market continues to consolidate, ample investment opportunities still exist due to the fragmented nature of the asset class.

Dream Storage’s Outlook

While 2024 has been slower than expected in terms of transaction volume, we have not wavered from our strict underwriting standards. However, we have explored more creative deal-closing structures to navigate the current market environment. We have found ourselves consistently advancing to the "best and final" stage on numerous opportunities, and we remain confident that we will have exciting opportunities to share with investors in the near future.

Have a great Thanksgiving!

The Dream Team