ollowing a 50 bp decrease by the Fed, we see continued optimism in the self-storage sector with a six bp decline in the overall capitalization rate and a 17 bp decline in the unleveraged discount rate. The self-storage team at Newmark Valuation & Advisory surveyed over 50 market participants about a wide variety of data points, including the usual cap rate, terminal cap rate, and yield rates. For this Q3 2024 report, we expanded the survey to include 14 topics, along with a five-year history for comparison. Key performance indicators are shown in the Segmentation by Investment Quality Table. See Segmentation by Investment Quality Table.

Anecdotal reports suggest optimism in terms of investment rate declines will continue, although remain a slow pace. It clearly will not match Fed policy change basis point by basis point, in part because market sentiment did not react to the 11 Fed rate increases basis point by basis point. These metrics suggest more transaction volume heading into 2025.

See Self-Storage Times Series Table.