The impact of recent significant increases in 10-Year Treasuries indicate cap rates will remain flat until the bond market stabilizes. Over the long run, it appears the rapid compression in self storage cap rates is likely to flatten and stabilize. Operationally, the asset class remains robust. Year-over-year results show increases of 3.1 percent for physical occupancy and 4.8 percent for rental income, as of the first quarter of 2013, according to Self Storage Performance Quarterly published by Cushman & Wakefield.
