Dream Storage Newsletter - September 2025

Monthly Newsletter

In this month’s edition, we share insights Rachel gather from conversations with brokers and owners during the Self Storage Association’s 50th Anniversary Conference in Las Vegas.

Market Insights

The self storage industry is showing signs of stabilization, with customer demand and occupancy levels comparable to last year, and rental rates beginning to trend upward. Revenue growth is being led by major markets such as Chicago, New York, and major MSAs on the West Coast, while Sunbelt markets continue to absorb new supply. Transaction activity is increasing, supported by favorable debt markets and a surge in private capital. Public Storage has closed or is under contract to close nearly $785 million in deals year-to-date. AI is reshaping the industry by enhancing customer decision making, reducing operation costs, and optimizing revenue management. Industry leaders view the influx of new capital from joint ventures, sovereign wealth funds, and private equity not as competition but as opportunity with self storage gaining recognition as a core institutional asset class. Consumer demand remains strong, with a record 13.4% of U.S. households using storage in 2024, up from 9.0% in 2005 an 10.6% in 2020, signaling growing long-term adoption. Meanwhile, new development is slowing due to tighter financing conditions, increased construction costs, market saturation, and the prevalence of discounted move-in rates, which have made underwriting news projects more challenging.

Dream Storage’s Outlook

Optimism was palpable at the conference, and we share the enthusiasm expressed by many of our peers. We believe the market is entering a favorable buying phase and look forward to sharing upcoming opportunities with you in the months ahead.

As always, thank you for your continued support.

Dream Storage