As we enter 2015, investors always ask about market expectations for the New Year. Market fundamentals remain robust for self storage, so new construction will rise. Cap rates compressed more in the second half of 2014, suggesting moderate compression to stabilization in some markets in the first half of this year. The long term superior performance of the sector has brought new players and capital to the asset class, and competition for product – both single assets and portfolios – is high. More CMBS debt will renew this year over last, suggesting rates may begin to stabilize (regardless of Fed policy). Overall, it will be a solid year for self storage.

The report below summarizes the data from the latest PwC Investor Survey for the domestic self storage market. We have also included the results of an expanded survey which includes market optimism, absorption time and other elements that characterize the current market conditions for the self storage asset class.

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