usiness involves a lot of planning: strategic, financial, operational. But in self-storage, where you not only have to protect your own interests but the personal property of thousands of customers, disaster response planning becomes all the more crucial.

Here’s a primer on steps to take before and after a disaster to minimize stress for your tenants while limiting your own legal, financial, and operational exposure.

What does that process look like?

Seeking legal guidance is a good way to start. Self-storage attorneys represent owners and operators and are equipped with a much greater understanding of the industry than general practice lawyers. They can review your insurance policies and leases to ensure that they’re worded for your maximum protection.

Here, J. Ashley Oblinger, an attorney in the law firm of Weissmann Zucker Euster Morochnik & Garber P.C. in Atlanta, Ga., identifies characteristics of a well-crafted lease and highlights noteworthy exceptions. The definition of a “disaster” is broader than you may assume, encompassing both natural and manmade threats beyond severe weather or fire.

“Any decent rental agreement will release the operator from liability for things like theft or rodents, vermin, insects, and floods,” Oblinger says. “The operator is not in control of the property, so they shouldn’t be liable for things that happen to it.”

But, as he clarifies, that doesn’t put you in the clear for every water-related issue. “If you know about something wrong with the roof, you have to fix it. Even though the rental agreement might release you from liability for water damage, a lot of times the court’s not going to agree with that contract language. Make sure that you’re keeping up the maintenance at your facility.”

Most self-storage facilities are protected from claims that are due to natural factors beyond human control, such as severe weather phenomenon. These “Acts of God” may include damage caused by wind, water, lightning, hail, mudslides, and earthquakes.

However, even if an Act of God caused the damage, a tenant still might take you to court. Their counsel can try to show negligence on your part, for example, if the damage was due to poor maintenance. Although they may face steep odds, it’s a good idea for you to choose coverage such as customer goods legal liability insurance to help cover your legal costs.

Lawyers aren’t your only allies in disaster response planning. Some consulting companies within the self-storage industry offer training, often as a part of their larger package of services. Their guidance can contribute to greater disaster preparedness.

Carol Mixon, founder and president of SkilCheck Services, Inc., shares an example from her procedure manual. “I have a whole section on what to do, from top to bottom, when there’s an emergency. Who are the first people you should call? The first call’s 911, right? Then after that, it’s the property owner, and so on.”

While planning seems like a reasonable approach, Oblinger finds that many self-storage operators wait until after a disaster to seek advice, magnifying their response burden.

“If you already have a plan in place, that can significantly reduce the stress because you have a checklist to follow,” Oblinger says. “You have people’s property that might be damaged beyond repair. You’re fielding calls from tenants. They’re going to want to visit the facility, which might not be allowed. All this is going to create more stress on the facility and their employees.”

Your disaster response checklist will at least create some clarity and direction in moments when both may understandably be scarce.

“We had a major fire at one of the properties we managed,” says Barnholdt. “And it put every system policy and relationship that we had to the test really quickly. It was a super stressful, very fast-moving situation.”

But the outcome could’ve been much worse. “I think we had about a 90 percent tenant insurance penetration at this property when it happened,” Barnholdt adds. “That’s something that we worked really hard to achieve. So, the majority of our customers had a clear path to recovery.”

Insured tenants may receive at least some compensation for their losses and are less likely to seek that from you.

There are some ways to minimize such risks. As Oblinger explains, “A good rental agreement will address this at the start by including a use provision that prohibits the storage of hazardous and flammable materials.”

Some self-storage operators require tenants to list the basic contents of their unit at move-in as part of the lease. It also helps for property managers to maintain a visible on-site presence, especially during move-ins and move-outs, to stay aware of what’s being stored. “It’s not surveillance, it’s just good management,” says Barnholdt.

However, these measures rely on tenants being honest in their disclosure and strictly adhering to rental agreements. While tenant compliance isn’t guaranteed, taking these steps can reduce the likelihood of stored property causing damage to your facility.

Tenants are responsible for insuring their own property against damage caused by other tenants in incidents like the one Mixon experienced. Oblinger recommends including an indemnification clause requiring tenants to “defend and hold the operator harmless for actions brought by others for the tenant’s conduct” to make this expectation clear from the start.

“I think the biggest mistake an operator can make in a disaster situation is to not notify the tenant and try to hide something,” Oblinger says. “It’s better to be transparent on the front end, especially when you’re dealing with hurricanes, earthquakes, fires. It’s not going to really affect your legal liability, because what happened, happened. I wouldn’t recommend anybody admit fault.”

While no one likes delivering bad news, it’s your responsibility as an owner or operator to let your tenants know when a disaster impacts your property. What’s the best approach? Since some disasters may limit tenants’ access to power and communication services, you’ll want to cover the bases. Make information available through multiple means, including an answering machine recording at your company’s main phone number, a company website message, text messages, and signs posted at the facility.

When notifying tenants, always clarify whether they can immediately access the facility. Public safety officials may prohibit local travel or access to a specific property due to safety concerns. Your rental agreements should specify that tenants can be temporarily denied access in emergencies.

Of course, you won’t focus all your disaster aftermath efforts on tenants. You’ll be thinking about the impact of the disaster on your business. “Start to create a plan with your insurance company,” Oblinger says. “And if you sell insurance to tenants or have a protection plan for their property, bring those companies in too, because there’s probably going to be tenant claims.”

Oblinger also strongly advises that you find out what your insurance company will and won’t cover and if they’ll defend you against tenant claims. If not, alternative counsel may be necessary.

or a long time, self-storage rewarded common sense. Find a well-located site, keep it clean, manage expenses, and treat customers well, and the business worked.

That hasn’t changed. What has changed is the level of competition around it. Today, doing the basics well is no longer enough to maintain performance, because the rules of the game have shifted.

Over the past decade, institutional capital has flooded the industry, portfolios have consolidated, and technology platforms have moved from optional to expected. The largest operators now manage hundreds, in some cases thousands, of stores under centralized systems built to extract efficiency at scale. Digital advertising has grown more expensive and more complex. Consumer expectations have shifted toward fully frictionless online experiences.

Independent operators are feeling pressure, not because they’re running bad businesses—most aren’t. They’re feeling pressure because the rules of competition have changed around them, and the game now rewards leverage as much as it rewards competence.

Large operators spread fixed costs across dozens or hundreds of locations. Their analytics platforms, call centers, revenue management teams, and marketing specialists are expensive to build but cheap to replicate across a portfolio. The per-store cost of those resources shrinks as the portfolio grows. The independent operator pays full price for the same tools or goes without them.

That’s the leverage gap. And it’s worth naming clearly, because the solution isn’t to feel outmatched. It’s to understand where the gap is real and where it isn’t. Because the leverage advantage doesn’t run in one direction.

A centralized pricing algorithm sees aggregated data. A local manager sees the new competitor that just opened two miles away, the apartment complex that broke ground last month, and the seasonal patterns that have played out the same way for 15 years. That street-level knowledge doesn’t always show up in a dataset, but it shows up in performance.

Independent operators can price nimbly, adjust quickly, and respond to local conditions without waiting for a centralized team to catch up. That’s not a consolation prize. When paired with disciplined practices, it’s a genuine competitive advantage—one that scale can actually undermine.

But there’s an important distinction between adopting technology and accumulating it.

Independent operators don’t have the margin for redundant platforms or tools that don’t earn their keep. The right question isn’t which tools do larger operators use, it is which tools measurably improve my outcomes in my market? A targeted, well-integrated tech stack that your team actually uses will outperform a bloated system that no one fully understands.

Set performance expectations for every platform you pay for. Audit subscriptions annually. Cut what isn’t working. Technology should simplify your operation. If it’s adding complexity, it’s not doing its job.

Total spend isn’t the only metric that matters—efficiency is.

Independent operators who track cost-per-lead, lead-to-rental conversion rates, and the true origination source of every new rental gain something larger competitors often lose in the noise of scale: clarity. When you know exactly which channel is producing rentals and what each one costs, you can concentrate your spending where it performs and eliminate what doesn’t. You don’t need to outspend a REIT. You need to outperform your own last quarter.

Economic occupancy does. It measures the percentage of your gross potential rent that you’re actually collecting, relative to current street rates. And the gap between the two is where the margin quietly disappears.

Consider a simple example: A 300-unit facility at 92 percent physical occupancy looks healthy, but if 40 percent of those tenants are on rates set two or three years ago, and street rates have moved up since then, the gap between what you’re collecting and what you could be collecting may be significant, compounding month after month without ever triggering an alarm.

Unchecked discounting, legacy contracts that never get reviewed, rate increases are deferred out of habit or discomfort—these aren’t dramatic failures. They’re incremental leaks. A monthly economic occupancy review, a structured weekly rate cadence, and a clear policy on legacy pricing can arrest those leaks before they become meaningful losses.

1. Review economic occupancy monthly. Compare gross potential revenue to actual collected revenue. Know where your rate gaps live and how large they are.
2. Set a structured rate review cadence. Weekly or daily pricing assessments grounded in local competitive intelligence create upward momentum without volatility. Don’t wait for occupancy to dip before you act on rates.
3. Audit your technology stack annually. Eliminate redundancy. Confirm that every platform you’re paying for is producing a measurable return. Avoid accumulating tools you don’t use.
4. Track digital marketing at the conversion level. Know what each rental actually costs you to acquire, by channel. Shift spend toward what performs.
5. Invest in your people and protect their local judgment. A well-trained manager who understands your market and is empowered to make informed pricing decisions is one of the most valuable competitive assets an independent operator has. Don’t let that go underutilized.

For some, the appeal is access to more structured systems without giving up ownership. For others, it may not be necessary if they already have strong internal processes in place.

Like any operating decision, the question comes down to economics: What would it cost to build these capabilities independently, and how does that compare to the potential performance lift?

Independent operators bring things to this business that scale cannot manufacture: real relationships with tenants, deep knowledge of local markets, and the ability to make decisions without a committee. Those aren’t soft advantages. In the right hands, they’re durable ones.

The competitive environment has grown more sophisticated. That’s not a reason for alarm. It’s a reason for intention in pricing, technology, marketing, and how you develop your team.

The operators who will struggle are those who assume the old formula is still sufficient. The ones who will win are those who pair the strengths they’ve always had with the discipline the current environment demands.

Refinement rewards discipline. It always has.

or decades, the self-storage industry has relied on a simple formula for online success: Show up on the map and have the most content on your website. If you wrote enough blog posts about how to pack a box or chose the right lock, you were told you were building topical authority. Furthermore, your content was indexed in the search engines. The trick was to cover every keyword so Google would see you as the go-to place for storage.

But the era of the “content megaphone” is ending. Today, AI has changed how your customers find you. Whether they are using ChatGPT, Perplexity, Gemini, or the new “Ask Maps” feature in Google Maps, they aren’t looking for a list of 25 websites to click through; they are looking for a recommendation.

In this new AI-driven world, brand authority (being the trusted, recognized leader in your local area) beats topical authority every time. For self-storage facility owners, this means shifting focus from writing more to being more helpful and getting recommended.

• Topical Authority – An SEO consultant might tell them to write articles on the “History of the Taco” or “Best Toppings for Tacos.” This is just “keyword slush”—filling a website with information no one actually asked to read. This is the old way.
• Brand Authority – This happens when local food critics, Reddit customers, and newspaper articles all mention that a restaurant has the best-rated tacos in town. You become a known entity. This is the new way.

In self-storage, having 100 articles on your site about moving tips doesn’t make you an authority if those articles just repeat what everyone else says. AI systems are now smart enough to dismiss thin, superficial content. Real authority is created when others cite you as a source.

In the past, a user searched “self-storage near me,” and Google showed a list. Now, as queries become more complex, AI interprets the user’s needs. For example, if a customer asks, “I’m moving my grandmother’s antique furniture, and I’m worried about humidity; who can I trust?” the AI doesn’t just show the closest facility. It looks for businesses that are structured around qualities like honesty, climate control, and protection.

Research shows that for these “trust-oriented” queries, AI narrows the field significantly, often recommending only three to five businesses. To be one of those few, your brand needs to be associated with specific solutions in the AI’s “knowledge graph.”

This means your website is no longer a megaphone to broadcast your message. It is an authoritative source—a warehouse of information that AI bots can source to answer a customer’s question. If an AI agent extracts one paragraph from your site to tell a customer about your climate-controlled units, does that paragraph stand on its own? Or does it collapse without the pretty photos and design around it?

To win in 2026, your information must be “extractable” and structured so that machines can easily parse your intent and relay it accurately.

Focus on Helpful, Deep Content
Stop trying to hit a word count target. Instead, answer the questions your customers actually ask when they call you. Moreover, shorter is better now!

• The Who, What, How Rule – Structure your content to clearly state who you are (the local storage expert), what you do (provide high-security vehicle storage), and how you help (with 24/7 gated access and on-site managers).
• Depth Over Breadth – One definitive guide on “Storing Classic Cars in Your City” is worth more than 10 generic posts about “car tips.”
• Avoid “fluffy” marketing language. Answer questions, solve problems, and get to the point. Keep your answers short and sweet.

Master the Language of Reviews
In the AI era, the words inside your reviews matter more than your star rating. AI uses review language to “frame” your business.

• If your reviews frequently mention “no hidden fees” or “cleanest units in town,” AI will use those themes to recommend you when a user asks for an “honest” or “well-maintained” facility.
• Encourage customers to be specific about the job you did for them. Instead of “great service,” a review that says, “helped me find the right size unit for my three-bedroom house on short notice” provides the evidence AI needs to recommend you.
• Adding pictures to reviews also helps them stand out in local search. For instance, a customer can take a picture of their unit and exclaim, “We fit a whole three-bedroom house in this unit!”

Optimize Your GBP
Your Google Business Profile (GBP) is the foundation for AI local search.

• Keep your categories and service descriptions specific. If you offer wine storage, RV, or boat parking, ensure those are clearly listed.
• Treat profile updates like news. Use photos to reinforce the specific types of jobs you want to be known for, like commercial inventory storage.
• Train your managers and staff to ask customers to take pictures. Obviously, be sensitive if it’s during a crisis.

Be Citable
AI doesn’t discover new brands. It selects from known entities. This means your brand needs to be mentioned across the web on local news sites, in community forums like Reddit, on social media, and in local business directories.

• When a local journalist writes about “Moving Trends in the City,” you want them to cite your data or your expertise. This “human citation” is the strongest signal to an AI that you are a brand of authority.
• Get super active in the community. Here are three examples:
  1. Help out if there’s a nearby natural disaster or if people are displaced by fire.
  2. Sponsor a local youth sports team.
  3. Tell stories of how you helped someone solve a storage problem.

Luckily, these AI bots work fast. If you start publishing articles and promoting them on social media daily with videos and graphics, they will find you quickly. Nevertheless, you have a lot of work to do!

ustomer complaints are common in self-storage, but industry experts note that clearer communication, better training, and a more personal approach can reduce many issues. Operators report that frustrations often start before move-in, including access problems and confusion about pricing or lease terms. Many renters are also experiencing significant life changes, such as moving, downsizing, or dealing with family stress, which can increase their sensitivity to problems.

Several self-storage professionals recently shared the complaints they see most often, what causes them, and what operators can do to improve the customer experience.

Another major issue occurs during move-in, when customers do not fully understand the terms of their rental. “If the manager doesn’t know how to use the system features during move-in, customers may leave without clear information on lease terms, fees, or promotions,” says DeFazio. When explanations around late fees, discounts, or lease rules are not clearly communicated, confusion is likely to follow. Per DeFazio, ongoing follow-up after move-in is one of the simplest ways to reduce repeat complaints.

Diane Gibson, president and CEO of Cox Armored Mini Storage, says customer stress also plays a significant role in how complaints surface. “A lot of people in storage are already in turmoil—moving out back home, death in the family, selling a house.”

Because of that, the way staff interact with customers matters just as much as the policies themselves. “It’s in your presentation,” she says. “It’s how you handle people.”

Rent increases remain one of the most common sources of frustration, according to Jessica Johnson, director of marketing for The Storage Group. “The biggest complaint is rate increases,” she says, explaining that many customers are enrolled in autopay or simply miss notices that are sent through multiple channels. “By that point, they’re frustrated because maybe it’s gone a month or two without them seeing the increase.”

Jen Conlon, director of marketing for StoragePRO Management, states that surprise pricing changes are a consistent issue across the industry. “Nobody likes to be surprised,” she says, adding that unclear expectations often lead to dissatisfaction. StoragePRO has experimented with “rate lock” programs at some locations to create more pricing stability. Conlon cites “the unknown and lack of communication” as key drivers of complaints.

Sue Haviland, owner of Haviland Storage Services, says inadequate training often leads to avoidable customer frustration, noting that common complaints include price increases, gate access hours, and late fees. “I think it usually happens when you haven’t trained managers really well to handle the type of things that cause objections.”

Haviland emphasizes the importance of clear policies and follow-through when handling customer issues. “If you educate them, follow up and explain it,” she says, pointing out that delays in decision-making can make situations worse. “One of the biggest complaints is when people don’t follow up on things they say they will.”

Giving managers more authority to resolve small issues on the spot can significantly improve customer satisfaction. “We allow them to waive a fee to get good customer service,” Haviland says.

DeFazio adds that documenting every interaction is essential. “Every interaction with a customer should go in the notes section of your software.”

At the same time, DeFazio notes that newer tools, such as smart locks, can improve convenience. “Smart locks come in handy,” she says. These systems can allow tenants to manage access digitally, reducing the need for physical keys and improving flexibility.

StoragePRO uses data and AI tools to better understand customer concerns. “We use Birdeye for reputation management,” says Conlon. “That’s a really easy way to see trending topics.”

Conlon also points to AI chat systems as a way to identify recurring questions. “We also use an AI chatbot called swivl.”

Johnson adds that AI is helping operators improve efficiency, saying “AI is helping with speed and scalability.”

However, Gibson cautions that technology should not replace human interaction. “Having that customer face to face interaction is important,” she says. “That person-to-person connection is important.”

Haviland agrees, noting that over-reliance on automation can weaken service quality. “With automated systems, customer service gets lost.”

Unresolved pricing concerns, especially related to rate increases, can quickly turn into negative reviews. Because of this, companies are more proactive about monitoring feedback. “We monitor our Google reviews every single day,” Johnson says, adding that teams often contact customers directly to resolve concerns.

StoragePRO responds quickly when negative reviews appear. “When a one-star review comes in, someone on the marketing team here reaches out to the store and also the district manager,” says Conlon, who explains that the goal is to ensure customers feel heard and supported. “We just want the customer to feel heard and seen.”

DeFazio reminds operators that complaints should not always be viewed negatively. “You need to look at it as an opportunity to grow and an opportunity to fix something,” she says, adding that familiarity with daily operations can sometimes make staff overlook small but important issues that customers notice immediately.

“Customer service is still critically important,” Johnson says, because many customers are dealing with stressful life transitions, which makes empathy essential. “We are a service business.”

Conlon encourages operators to regularly evaluate the customer experience firsthand. “Put yourself into the shoes of the customer and walk through the customer journey yourself,” she says. This includes every step, from online booking to gate access and facility navigation.

DeFazio also recommends “secret shopping” as a way to identify gaps in service. “Have a friend go secret shop your facility online, in person, or on the phone,” she says, noting that outside perspectives often reveal issues internal teams miss.

For Gibson, the message is simple. “Pricing is important, but it’s how you treat people,” she says.

As the industry continues to evolve, communication, training, and customer-first service will remain the foundation of long-term success. Even as facilities adopt more automation and digital tools, customers still expect clarity, responsiveness, and human support when problems arise.

“Transparency cures all,” Johnson says. “As long as you’re being upfront and transparent and communicative, it’s a good thing for all operators to be doing.”

here are five data types critical to self-storage development. These should be used to prequalify parcels long before a shovel hits the ground.

The newest fake data is fake rental rates. Many REITs, larger operators, and even some small operators have gone crazy with teaser rates. They offer unbelievably low rates, only to double them in two months and then double again in eight more months. It sounds unethical, therefore hard to believe, but it is true. I have experienced this firsthand, more than a couple of times. I rented a 10-by-10 climate-controlled unit for $65. I asked how long the rate was good for, and she said she did not know. Fifteen days after moving in, I got a letter stating that my rent was going up by $135 starting month three. At 10 months, my rent was increased to over $200 per month.

We sold a couple of facilities to REITs, where we watched online rents drop between 100 to 150 percent and more.

The problem with this fake data is threefold:

• Since they are not letting customers know about the monumental rate hikes, it makes the industry look bad, and it appears this is going to lead to more regulatory oversight and new statutes for the industry.
• It is very difficult to determine the current “effective rate” for the life of a customer, so it takes more effort and expertise to prepare a feasibility or P&L with the real “effective rates.”
• It was a monumental step forward when Radius+ and others provided facility pipeline data. It saved a lot of time, but more importantly, pipeline facilities could be taken into consideration when analyzing a location. Now, given the economy and the realization that you can’t build a successful self-storage anywhere, some pipeline facilities are never going to be built are now fake data.

We recently reviewed a site with six pipeline facilities and personally checked each one. One had a coming soon sign for another use, and one was under construction for another use. Again, online data is a savings grace, but it must be checked in the field. The removal of one pipeline facility can change a location from a D or C site to a B or an A site.

P.S. If you’re looking for a property in a given area, you may find a gem by calling all the pipeline facilities.

t’s the kind of incident that shakes self-storage owners and their employees to the core. In early February, a man walked into a self-storage facility in Philadelphia, Pa., and demanded money. The office manager complied and handed over the cash, but it didn’t matter. After taking the money, the suspect opened fire, striking the manager in the shoulder and chest before fleeing the facility. The manager survived, but the incident served as a sobering reminder that self-storage employees, like workers in any customer-facing industry, can suddenly find themselves in dangerous and unpredictable situations. MSM reached out to the facility for comment, but the operator declined.

“Not surprising,” Kristi Adams, chief revenue officer and president of international at OpenTech Alliance, Inc., says of their decision. She feels the industry often struggles to publicly discuss crime trends because operators are understandably protective of facility reputations. “They don’t want to talk about it because they don’t want it to become a public relations issue, but when a crime occurs at a self-storage facility, it’s going to make the news anyhow, so it’s best to get ahead of it and talk about how you’re going to improve safety in the future.”

Another high-profile incident was the tragic 2025 shooting of facility manager Patricia Villa by a disgruntled tenant. Following her death, Harry Sleighel, founder of Tenant Property Protection and partner with SAFEhugg, says conversations around employee safety really began ramping up. “Talking about safety isn’t what creates concern for the industry, avoiding the conversation is,” Sleighel says, echoing Adams’ thoughts. “Our duty as an industry is to make sure they feel supported, connected, and protected.”

Diane Gibson, president at Cox’s Armored Mini Storage Management, Inc., says her facilities are equipped with cameras and managers are provided mace; however, she believes one of the most important safety tools remains instinct. “If an employee has a feeling that something isn’t right, they have the ability to say, ‘I can’t leave my office right now.’ And if they’re not comfortable, we make sure they always have another way to retreat from the situation rather than going around the person causing the stress. Multiple exits are key.”

“Most people committing a crime aren’t calm and collected,” says Justin Insalaco, a retired police officer and board member with Crime Stoppers. “Managers should look for signs: anxiousness, sweating, darting eyes. As a police officer, I’ve spoken with many victims following an incident, and they often would say that in hindsight they should’ve known something was off, but they didn’t follow their gut.”

Insalaco is not opposed to individual operators and workers possessing a firearm if they are properly trained and legally permitted to carry. Gibson, on the other hand, doesn’t support firearms in the workplace. But they both agree that, regardless of whether someone carries a firearm, situational awareness and de-escalation tactics remain the first line of defense. In fact, Insalaco recommends hiring a private security company to train personnel in these areas. “Some of their suggestions may be simple, but a lot of times people don’t think about them,” he says. “For example, if an employee is escorting someone to a unit, they should walk behind the person and direct them rather than leading them. Having them behind you puts you in a much more vulnerable position.”

Another area where managers can better protect themselves is by avoiding unnecessary confrontation. Gibson recalls situations where employees aggressively approached tenants over late payments, rule enforcement, or suspicious activity. “I encourage calm, non-confrontational interactions. Sometimes it’s better to just act like you’re doing your rounds and have a spur-of-the-moment conversation rather than specifically going after them. It’s all in the presentation.”

For operators, the balance between customer service and employee safety can be difficult. Some employees are hesitant to tell a customer “no” for fear of retaliation—in the form of bad reviews.

The risks become even more apparent when employees escort customers around a property. In June, police arrested a suspect accused of assaulting a self-storage manager at a facility in Miami when she took him to see a unit.

Modern access control systems can help eliminate situations like this while still helping the customer find what they’re seeking. Farmer explains that some platforms allow customers to complete transactions remotely and then use mobile credentials, wayfinding technology, or illuminated pathways to navigate directly to their unit without requiring an employee escort. “This actually improves convenience while reducing unnecessary face time,” he says. “The less physical interaction, the lower exposure to risk.”

One of the biggest obstacles to improving facility security is convincing owners to invest in updated technology, says Farmer, who frequently encounters operators relying on decades-old access systems because they still perform their basic function of opening gates and controlling entry. “You can’t rely on a single tool,” he says, noting that older generation facilities may put up a perimeter fence or install a keypad and call it a day. “Security needs to be like an onion, with multiple layers.”

Continues Farmer, “Another aspect of security that gives some operators pause is recurring subscription fees or upgrade costs, but the investment is relatively small compared to the benefits.” Cloud-based access-control platforms, including PTI’s StorLogix, not only offer increased automation and an uplift in tenant experience but also enhance the facility’s overall security. “Operators can easily review site activity and access areas while monitoring zones and alarms from one dashboard, often at a cost of pennies when licensing is scaled across all units within a facility over the duration of the year,” he says. “By making the upgrade, you can lower operating expenses and heighten security. That’s a win-win.”

Adams agrees that at first it may seem demanding or expensive for legacy facilities, of which the U.S. has many. “Our country certainly led the way in self-storage, but that’s left us with lots of outdated properties. Many international markets are ahead technologically because their facilities were built more recently and are less burdened by aging infrastructure, so it’s time to modernize. Even an inexpensive smart sensor can let you know immediately if a gate doesn’t close on Friday night rather than discovering it on Monday morning.”

One challenge with protecting self-storage employees is that they’re very mobile, so a traditional panic button, for example, doesn’t suit them. However, there are alternatives. “There are discreet wearable panic buttons,” says Insalaco. “That way, whether behind the counter or out on the property, an employee can always be connected. With phone-based solutions, the screen may be locked or you’re fumbling with the keypad trying to find the app, and by then it’s too late.”

Sleighel understands the importance of giving employees a simple way to get help when they may not be able to physically access their phone. That’s why SAFEhugg uses discreet voice activation technology. “If a manager is walking the property and finds themselves in an uncomfortable or potentially dangerous situation, they can simply say their chosen safe word to activate SAFEhugg,” Sleighel says. “The phone screen stays dark while the app works in the background, notifying emergency contacts and sharing the user’s location. It also begins recording live video and audio that may assist responders and provide valuable documentation after an incident.”

Extra Space Storage has hosted public safety fairs in the past, for example, and Midgard Self Storage has donated storage units and even got a shout-out from their local police department.

In the end, the Philadelphia manager recovered and went home. Now, the goal of every operator should be to help ensure the next employee does too.

elf-storage rate pressure is easing, but supply remains a drag. Tyson Huebner, Yardi Matrix’s director of research, recently presented at the Texas SSA Executive Retreat in Grapevine, Texas. The presentation, available upon request, covered supply and demand trends, operating performance, and investment market conditions, with a focus on Texas. Home to the nation’s two largest self-storage markets, Texas serves as a useful case study for broader industry trends. Strong migration and home sales during 2021 and 2022 fueled record self-storage performance, particularly in Austin, Dallas, and San Antonio. Developers responded by building aggressively in high-growth areas, such as the northern suburbs of Dallas and western San Antonio, while elevated property values accelerated consolidation as large operators, investors, and REITs acquired smaller owners. Conditions have since shifted dramatically. Home sales have fallen to multi-decade lows, leaving many migration-dependent submarkets facing excess supply and weaker demand. Increased competition for fewer tenants has pressured rents and returns, challenging the underwriting assumptions that supported acquisitions and development during the recent boom. In Texas, advertised rates were down 2.5 percent year over year in May 2026, 13.3 percent below their 2022 peak and 3.1 percent below May 2020. Although performance is beginning to stabilize as new supply moderates, recovery remains uneven and could take years in some markets.

Year-over-year rate pressure eases but remains broad-based. Advertised rates continued to face year-over-year pressure in May, though the pace of decline moderated compared to prior months. Nationally, advertised rates decreased 1.8 percent in May, a minor improvement from -1.9 percent in April and -2.0 percent in March. Same-store advertised rates for non-climate-controlled (NCC) units increased in only two of the top 30 metros. Similarly, rates for climate-controlled (CC) units increased in two of the top metros year over year.

Nationally, Yardi Matrix tracks a total of 2,513 self-storage properties in various stages of development, including 612 under construction, 1,603 planned, and 298 prospective properties. The share of projects (net rentable square feet) under construction nationwide was equivalent to 2.2 percent of existing stock through the end of May, unchanged month over month.

Yardi Matrix also maintains operational profiles for 33,008 completed self-storage facilities in the U.S., bringing the total dataset to 35,521.

Self-storage REITs posted stronger month-over-month asking-rate growth than the broader market, as REIT operators typically increase rates more aggressively during the spring and summer leasing seasons. However, REIT rents remain negative year over year, declining 3.1 percent nationally, indicating that recent gains are more reflective of seasonal catch-up than a full demand-driven recovery.

See May 2026 Year-Over-Year Rent Change For Main Unit Sizes table.

Sequential rate growth was broad-based, with 26 of the top 30 metros reporting month-over-month gains.

Many of the strongest month-over-month performers were markets with more pronounced seasonal patterns, including those with colder winter climates. Markets such as Boston, Washington, D.C., Indianapolis, and other winter-weather metros typically experience more seasonal demand.

See National Average Street Rates PSF For Main Unit Types chart and Monthly Average Street Rates By Metro table.

Elevated new supply continues to limit rate growth in several metros, particularly where newly delivered properties are still in lease-up. This pressure remains most visible in high-supply Sun Belt and Florida markets, including Tampa, Sarasota–Cape Coral, Orlando, and Las Vegas.

However, supply does not tell the full story. Some metros with moderate new supply, including Houston and Los Angeles, still have trade areas with concentrated new deliveries, creating localized pricing pressure that can weigh on broader metro-rate performance. Both metros may also face demand pressure, given their recent reliance on international migration for demand growth.

See Self-Storage Major Metro Summary chart.

Florida markets stand out among those with elevated recent supply, with Sarasota–Cape Coral, Orlando, and Tampa ranking among the most supply-heavy metros. All three metros are still in lease-up.

have more trailing one-year and three-year supply than a year ago; as a result, they have seen some of the largest decelerations in advertised rate growth. In metros such as Orlando and Tampa, recent deliveries appear broadly distributed across the market; in other metros, new supply is more concentrated in specific trade areas. Sarasota–Cape Coral, also known as Southwest Florida, has seen notable recent supply in areas such as Fort Myers, which may be contributing to softer rate conditions in the broader area.

See NRSF Delivered Over The Past 36 And 12 Trailing Months table and chart.

Phoenix remained one of the most notable markets for active development, ranking near the top for under-construction supply for the second consecutive month. The market’s pipeline is now meaningfully ahead of most other top metros, indicating that operators will face ongoing supply-side pressure, especially as recently delivered projects continue to lease up.

See Under-Construction Supply By Percentage Of Existing Inventory table and chart.

ntitlements have become one of the most influential variables in self-storage development outcomes. In the current development climate, where capital is more selective, sites are inherently more constrained, and municipalities are enforcing stricter project requirements, even projects with healthy fundamentals may still fail to move forward due to budget and speed-to-market impacts that arise during entitlements. Across recent self-storage work, a consistent pattern emerges: Projects that involve a construction partner early in the entitlement process are more likely to move from concept to completion with predictable results.

• Zoning and land use interpretation;
• Structural feasibility on smaller, irregular sites;
• Fire, access, traffic, and parking requirements;
• Stormwater, utilities, and offsite improvements; and
• Neighborhood and local political considerations.

These issues are tightly linked to how the building will ultimately be constructed, not just how it appears on a site plan. When a construction partner is brought in only after major entitlement decisions have been made, owners may find that key assumptions about massing, access, site design, or end operations are impaired and they have left potential terminal asset value on the table. All of the sudden, that “approval on paper” does not guarantee a viable project.

Treating entitlement as a construction-shaping phase, and involving a construction partner accordingly, keeps what the various authorities having jurisdiction will accept aligned with solutions that are not only buildable but make sense financially.

• Projects where a construction partner is engaged from day one, helping identify, price, and manage entitlement-related risk, are more likely to clear internal and external muster and reach completion.
• Projects where a construction partner is added only after approvals are stamped are more likely to encounter redesign cycles, budget pressure, and schedule slippage, and are at greater risk of stalling out or never breaking ground at all.

For owners and developers aiming to be early movers in the next growth cycle without taking on outsized risk, the implication is straightforward: Treat entitlement as a team sport and bring a construction partner into the fold from the outset of the opportunity.

Doing so does not eliminate all risk, but it eliminates some and makes other risks clearer and generally more manageable long before shovels hit the ground.

oodstock, Ga., may not be home to the iconic 1969 music festival, but the city has carved out its own identity as a growing, family-friendly community. With a mix of suburban living, proximity to Lake Allatoona, and a thriving retail and dining scene, it continues to attract new residents and businesses alike.

Meeting that demand is Space Shop Self Storage, which opened less than a year ago. Serving as general contractor, Shamrock Construction built the three-story facility with 77,050 net rentable square feet and more than 700 climate-controlled units.

The building, branded in Space Shop’s signature colors, incorporates a mix of brick veneer and EIFS panels, complemented by metal awnings and modern storefront glazing. Inside, customers are welcomed with complimentary coffee and cookies, along with convenient access to elevators, moving supplies, and carts—all leading to meticulously clean units and restrooms.

The property also emphasizes security, with 24/7 surveillance powered by PTI and secure keypad entry. The statement “Our eyes are on the job 24/7” is even mounted in raised lettering above the front desk, where video monitoring is on full display.

With strong early leasing activity and continued occupancy growth, it’s clear the facility is already striking a chord with Woodstock residents.

elf-storage runs on local demand—Someone is moving, downsizing, clearing out a property, or managing a business that’s run out of room. That need is specific, time-sensitive, and tied to a defined geography. The channels that have historically served the category well (Google Search, local SEO, roadside signage, and listing platforms that intercept renters already in the market) reflect all of that—effective, shared by every competitor in the same market, fighting for position in the same places.

TV advertising offered a way to break out of that, but production costs and broadcast commitments kept it out of reach for most operators. AI-powered production tools and streaming’s expansion into ad-supported inventory have changed that. Getting a professional spot in front of targeted local audiences no longer requires an agency or a significant upfront commitment.

What it does still require is a clear measurement framework; CTV generates plenty of data, but not the kind that paid search or listing platforms trained most operators to expect, and without the right signals in place, results are easy to misread.

That’s what makes CTV targeting different from traditional broadcast. Instead of buying time on a local channel and reaching everyone in a designated market area, operators can target households within a specific geographic radius or ZIP code cluster that matches their actual drive-time catchment area. A facility in a suburban market can reach households within five miles without paying to reach viewers across the rest of the city.

Geography is the baseline. CTV platforms can layer in behavioral signals tied to life-stage triggers on top of it: recent mortgage activity, rental searches, engagement with moving-related content. These signals help surface viewers already in the decision window, not just in the vicinity. For a single-location operator, that combination of geographic and behavioral precision is what makes the channel worth the investment.

Timing is the third variable. Storage demand follows predictable seasonal patterns, with spring and summer driving the bulk of move-related activity in most markets. A practical approach is to run concentrated flights of four to six weeks during peak periods rather than spreading budget thinly across the year. Operators who front-load spend into March through July, when household transitions are highest, and layer in behavioral targeting on top of geographic fencing, are working the channel the way it’s designed to be worked.

What works is directness. The strongest storage spots open on the problem, establish the facility’s location and accessibility within the first few seconds, and close on a single action: call this number, visit this site, reserve online today. Visuals that communicate cleanliness, security, and ease of access do more work than anything aspirational. A viewer three weeks from a move doesn’t need to be inspired. They just need to know where you are and that you can be trusted with their belongings.

The most common failure mode is assuming prior interest. An ad that leads with a promotional price before giving the viewer any reason to trust the facility tends to underperform one that establishes credibility first and offers the incentive second. Similarly, a concept built around the abstract idea of space and freedom will lose a viewer who is mentally calculating how many boxes fit in a 10-by-10 unit.

AI-assisted production changes what’s possible on the creative side: Operators can test multiple versions without reshooting. Running a cut that opens on a move-in special alongside one that leads with the facility’s proximity to a specific neighborhood or its climate-controlled units, then tracking which version drives more branded search and inbound calls is a test that simply wasn’t viable at traditional production costs. Creative that gets refined across a campaign, informed by actual performance data, consistently outperforms creative that gets treated as finished on day one.

The clearest early indicator is branded search volume. When a CTV campaign is running, direct site visits and searches for the facility by name tend to increase. Pulling a baseline for both metrics in the four weeks before a campaign launches makes any movement during the flight visible and attributable. For operators already running Google Search, a lift in branded query volume during a TV flight is one of the more concrete signals that the ad is registering with viewers.

Occupancy is the measure that settles the question. Net new rentals over the campaign window, compared against the same period in prior years or against comparable facilities in the same market not running TV, is the closest available read on whether the channel is driving business. It requires a longer evaluation window than digital metrics, but it’s also the number that connects directly to revenue rather than upstream activity.

The lag calibration matters here. Storage decisions don’t close on the same timeline as a paid search click. Someone who sees an ad in April may not sign a lease until mid-May, once the move date is confirmed and the need becomes concrete. Attribution windows that mirror standard digital cycles will cut off before a meaningful portion of conversions have occurred. Extending the measurement window to four to six weeks after a flight ends gives a substantially more accurate read on what the campaign generated.

Some CTV platforms now provide household-level attribution that connects ad exposure to downstream web visits, tightening the loop between impression and action. Where that capability is available, it makes the indirect signal picture sharper. Where it isn’t, consistent movement across branded search, call volume, and occupancy over an appropriately long window is enough to build confidence in what the channel is producing.

That window won’t stay open indefinitely. CTV adoption is growing across local advertising categories, and the differentiation available to early movers will compress as more operators enter the channel. The competency that matters, running targeted flights during peak demand periods, building creative that fits the category, and tracking the right signals across the right window, takes time to develop. Operators who build it now will have a head start on those who wait until the channel is crowded.

uring the last recession, self-storage was considered a shining beacon of opportunity for both owners and investors alike—an asset class that was touted as “recession-proof” due to a promise of steady, stable growth. The scramble by REITs and institutional investors to get in on a piece of that action has impacted an industry once dominated by small-business, mom-and-pop owners.

Today, approximately 40 percent of self-storage facilities are owned by institutional investors, compared to 10 percent to 20 percent just 10 years ago, leaving just 60 percent owned by small, private entities. The result is a tighter, more challenging market cycle for self-storage assets. Further, high interest rates and elevated (and climbing) material costs continue to hamper the construction industry, constricting housing starts and limiting self-storage new construction–primarily due to an overbuilt landscape with flat occupancy rates as fewer consumers are changing ZIP codes.

However, many of the attributes that initially enticed investors to self-storage continue to moderate the asset class today. What still holds true is that in large part the stability of self-storage is not as tied to job growth or income growth as is the case with other commercial asset classes. In fact, self-storage operating incomes tend to repeatedly outperform office, multifamily, retail, and other commercial types–regardless of the economic climate.

So, what’s in store for 2026? Pundits are predicting that while a full-fledged recession may not be on the horizon this year, economic growth is likely to be slowed primarily due to continue elevated inflation equipping only the wealthiest Americans (not the primary target audience for self-storage) with the confidence to spend with minimal hesitation.

If 2025 was a reset for the self-storage industry, 2026 is likely to prove that the asset class, while not necessarily recession-proof, certainly has the potential to be recession-resistant and particularly profitable for savvy and well-informed investors with capital. Opportunities, or hidden gems, still exist to invest in self-storage with profitable returns.

Oversaturation is common in primary markets, as well as regions where residential growth boomed five to 10 years ago, many stalling due to the COVID-19 pandemic followed by labor shortages and increased construction costs. At the time, self-storage operators were quick to enter these markets, readying for a residential surge. As the housing market constricted, these facilities were already open and operating with limited demand, creating an oversaturated market.

Oversaturated markets challenge the growth of operating incomes and, subsequently, profits of self-storage facilities. Why? Oversaturation makes increasing occupancy rates quite challenging for new or existing facilities, consequently limiting property values. With rental rates compressed, new players entering oversaturated or mature markets will find it difficult to gain a toehold amongst well-established competitors. These market leaders have more flexibility to keep rental rates low or offer new-tenant promotions that cut into profits.

When considering new market entry, research existing self-storage operations to determine current rates along with offered discounts and promotions. If rates are low and concessions are high, it’s a market with more self-storage facilities than it can support—an oversaturated market.

The bottom line: Evaluate primary and high-growth secondary markets with a keen investment eye, as most are oversaturated with self-storage facilities and, therefore, offer limited lucrative investment opportunities.

Take Atlanta: High-profile communities such as Buckhead or Midtown Atlanta present high barriers to entry. More involved municipalities, stringent zoning codes, and higher land costs create an onerous environment for a self-storage developer to obtain the necessary construction permits, let alone pencil a viable proforma. However, suburban markets northeast of the city or tertiary markets experiencing new growth and development are typically more amenable to a self-storage build.

Also, beyond the Capital of the South, development opportunities exist in markets such as Chattanooga, Tenn; Knoxville, Tenn.; and their surrounding submarkets, as well as zones outside the Sun Belt, including Tampa and Orlando, Fla. Municipalities in markets experiencing new commercial and residential growth such as these are eager to invite businesses in an effort to build their infrastructures.

The bottom line: The more established a market is, the more stringent municipalities are about future self-storage growth. Seek emerging markets more amenable to establishing infrastructures, but do it quickly before too many investors ascend.

Secondary markets with close proximity to a major metropolitan area and a population of two million to five million are prime candidates for oversaturation, especially if self-storage development is already underway. However, tertiary markets an hour or more from a major city with populations less than two million, feature less population density and fewer, if any, institutional players.

A lower self-storage square footage per capita means less competition for self-storage renters. And those existing self-storage facilities are likely locally owned, “old-school” operations, creating an immediate need for (and attraction to) shiny new facility with state-of-the-art technology. Likewise, residents of these communities also benefit from a lower cost of living and are flush with more disposable income to fulfill a storage need.

The lack of oversupply and competition allows self-storage operators to set peak rental rates as high as the market will bear. Self-storage operations in these markets offer stable, steady revenue with lower operating costs due to less demand for modern features and amenities. However, these markets contend with lower household incomes and less job security, driving less opportunity for rent growth and value appreciation. Ultimately, at the time of sale, those assets contend with a limited buyer pool of individuals or mom-and-pop operators instead of institutional capital or private equity.

The secondary markets that offer promising self-storage investment opportunities are currently not in the top 25 or even 50 MSAs. For instance, markets such as Raleigh, N.C.; Wilmington, N.C.; Asheville, N.C.; Chattanooga, Tenn.; Knoxville, Tenn.; and Greenville, S.C., are contenders for the next wave of self-storage development. For promising tertiary markets, rural areas or exurbs with steady employment hubs, such as large manufacturers or data centers, are also high-potential targets.

The bottom line: Secondary and tertiary markets are better options than primary markets for new self-storage facilities.

These properties are often independently-owned–often times by absentee owners–and under the same dated or stale ownership and management for many years. Typically, these assets benefit from a stable tenant base that drives steady revenue, resulting in owners lacking motivation for upgrades or improvements. Many times, rental rates are intentionally stalled below market rate in order to maintain higher occupancy levels.

In these cases, acquiring under-managed or under-optimized properties with a strategic plan for capital improvements is an opportunity for increased profitability and value-build. How do you spot a neglected property?

• Outdated or nonexistent digital presence (i.e. website, social media channels, etc.)
• Rents below market value, even with minimal competition
• Absence of (or dysfunctional) technology
• Lack of security (i.e. cameras, gated access, etc.)
• Unanswered telephones
• Poor maintenance and lack of curb appeal

However, defining a capital improvements plan prior to acquiring the self-storage asset ensures value-add success. Consider maintenance and upgrade projects both large and small, such as expansion or an automated digital entry system or fresh paint or upgraded lighting. Think beyond existing self-storage walls to identify new revenue streams, like renter insurance or moving services. Payroll costs can also be reduced with automation, such as online applications, video surveillance, and a remote call center.

With a plan in-hand, due diligence is key. Will the capital improvement costs be offset by expected revenue? Will the market bare the increased rental rates reflective of an improved facility? Will competitive headwinds thwart efforts to increase rates?

The bottom line: Comprehensive knowledge not only of the asset but also of the market and potential economic shifts and influencers are key to investing success.

Gone are those glory days, yet profitability is still possible—eventually. The most realistic investment scenario is based on a capital raise with a seven-year horizon, particularly for new development. Although some high-growth markets could support a five-year exit, most new facilities require a longer timeframe to stabilize in order to meet proforma. For value-add acquisitions, seven years allows sufficient time to deploy upgrades and improvements that attract new tenants and renewals at higher rental rates.

Also, seven years allows investors time to weather the current economic climate. For properties purchased or built in 2026, a realistic divesting timeline extends to 2033 when (optimistically) a more stable market will exist.

The bottom line: A realistic investment horizon is seven years to allow time for stabilization, value appreciation, and a healthy return on investment.

Today, a buyers’ market exists for most self-storage assets. However, with a smaller buyer pool than in recent history, deals are traded based on current conditions rather than on opportunistic, value-add projections—with no shifts expected soon. Until a decline in interest rates and inflation spur movement in home buying and selling, operating income is expected to remain static—ultimately compressing property values in the short term.

It remains to be seen whether self-storage will ever return to its “recession-proof” classification. However, investors that identify well-defined and well-vetted opportunities ensure that the self-storage asset class remains resilient and profitable—and “recession-resistant.”

riginally viewed as something less desirable than retail or commercial high rises in midtown Manhattan, self-storage eventually became known as a sound investment with excellent returns. However, after years of notable success in major MSAs across the country, as well as shifts in supply and demand, many investors are now moving into secondary and tertiary markets to increase their portfolios.

What’s driving them? Some experts point out that even though there’s an increase in interest in these smaller markets, this activity is not so new. “Investor appetite for these markets has always been strong,” says Kenneth Cox, vice chairman at Newmark Capital Markets, “but it became especially aggressive during the COVID years, when pricing in major metropolitan statistical areas (MSAs) became extremely aggressive, which encouraged institutional groups to look at smaller markets, even though cap rates were sometimes very close to primary markets.”

Today, investors are still finding opportunities to acquire mom-and-pop or under-managed assets and implement institutional best practices around revenue management, marketing, operations, and expense controls, especially since these types of markets tend to offer better relative yields, less competition, and a more attractive basis compared to many primary markets.

Capranos cautions to have a long-term strategy too. “We also overlay job diversification, because the durability of a market depends on whether the demand drivers will still be there at the end of a long hold.”

Breaking it down further, Capranos says, “On demand, population growth gets most of the attention, but household formation, housing turnover, and the underlying demographics are doing the real work in predicting storage usage. On supply, you can’t evaluate it on its own—it has to be weighed against demand, and the trajectory matters as much as the level. A market at the national average with a heavy pipeline coming can be challenging, and a market above average where development has slowed can be attractive.”

The third bucket is the operating economics, particularly what the typical customer in that trade area can actually afford. “You can have a strong supply-demand picture and still miss if the underlying demographics don’t support the rent levels your model needs,” says Capranos. “The metric we care most about is trade area absorption capacity over a long horizon, filtered through what the customer base can realistically pay.”

Levy recommends being as thorough as possible with this type of research. “I map out all the competitors, drive by them, shop at a few of them, look at new housing developments and multifamily projects. I check if there are new grocery stores or shopping anchor centers, looking for new supply coming into the market that I otherwise may not have been aware of.”

When conducting due diligence, Cox warns that what may make an investment attractive to one investor may also make it easier for extra competition to pop up. “It may be easier to develop competing facilities due to lower land costs, less restrictive zoning, or a simpler entitlement process,” he says. “Because of that, investors are spending a significant amount of time evaluating barriers to entry and the likelihood of future competitive supply.”

Capranos mentions challenges he’s seen come up consistently. “The first one is labor. In smaller markets, the bench of experienced operators and vendors is thinner, which is one of the reasons we’ve invested heavily in technology and remote operations. It allows you to deliver a consistent customer experience at scale without relying on a traditional staffing model,” Cox says, bringing up competitive dynamics. “With fewer competitors, pricing moves carry more weight. This makes real revenue management capability more important. Marketing also looks different. Demand in smaller markets comes through a mix of channels, so the playbook from primary markets don’t always translate directly.”

Levy agrees. “Given the current pressures on rates and financing costs, developments and conversions are extremely difficult, so the highest probability of success is through acquisitions. I’m sure it’s possible to do it through new developments, but it’s becoming more difficult.”

Capranos adds that conversions can work in the right situation, but they require a specific alignment of building, location, and demand that isn’t always available. “Acquisitions are attractive because there’s a large universe of well-located facilities owned by long-time operators who never invested in an institutional-quality operating platform. With the right team, technology, and platform, you can meaningfully improve these assets’ performance.”

The challenge remains sourcing and execution, and that’s where long-term relationships matter, whether with owners, brokers, or other key partners. “We leverage our data to identify the best investment opportunities and then work with our market relationships we’ve built over the years, where there’s trust on both sides of the table,” says Capranos.

For him, the biggest takeaway is that this is increasingly a platform business. “The asset class has still been one of the best performing over the long run, arguably one of the best when compared to other investment asset classes,” Capranos says. “Over the last few years, it’s been a more difficult operating environment, but we’re starting to see the fundamentals build, and we think we’re in the early innings of a much more favorable operating environment going forward. The fundamentals are one of the core drivers of long-term value creation, but execution is what separates outcomes. The macro landscape isn’t always as well understood as it applies to specific asset classes, but understanding who your sponsor/operator is and what sets them apart is just as important. The technology, data, and operating capabilities of a specific operator are what will define the next decade of returns.”

Challenges aside, Levy is steadfast in his belief that investing in self-storage remains a good idea, regardless of the market. “I continue to be long-term bullish on the industry. Compared to many other sectors within commercial real estate, the industry tends to be far more relationship-driven with a noticeably less cut-throat competitive dynamic. This applies to REITs, all the way down to the small operators. Everyone plays nice in the sandbox, which is one of the reasons why I’ve been in the industry for 20 years, and why I continue to enjoy it.”

elf-storage and boat/RV properties are growing investments, with the global self-storage market projected to reach $104.7 billion by 2034 at a 6 percent CAGR. But risks evolve across the asset’s lifecycle (acquisition, management, improvement, and sale).

• Financial – Overly optimistic revenue or expense assumptions
• Operational – Lease-up delays, delinquent tenants, and management errors
• Compliance – Zoning, lien law, and environmental liabilities
• Market – Competition and shifts in local demand
• Disposition – Poor records or market timing reducing sale value

Effective risk management (stress-testing assumptions, maintaining reserves, ensuring compliance) protects returns. Firms like Oakside provide tailored guidance for navigating these challenges.

See Key Risk Categories table.

On the expense side, actual operating costs typically run 30 percent to 45 percent of effective gross income (EGI) once tax reassessments and insurance are factored in—insurance premiums alone have surged 40 percent to 80 percent in catastrophe-prone markets over three years—and soft costs can consume 15 percent to 20 percent of hard costs. Closing these gaps means secret-shopping competitors within five miles, cross-referencing the rent roll against bank deposits, and obtaining binding insurance quotes during diligence. Firms like Oakside specialize in stress-testing these assumptions before capital is committed.

Allocate roughly 2 percent of gross revenue to a CapEx reserve, rising to 4 percent to 5 percent for high-risk properties with complex HVAC, flood exposure, or heavy snow loads—otherwise a $75,000 roof replacement or $20,000 gate repair catches owners off guard. Requiring tenants to carry their own insurance further reduces liability, especially in boat and RV storage.

Buyer type shapes pricing. Public REITs like Public Storage, which announced a $10.5 billion all-stock merger with National Storage Affiliates in March 2026, target 50,000-plus square foot properties in major markets, while private equity and 1031 exchange buyers pursue smaller facilities at higher cap rates. A well-organized data room is essential, and facilities on modern platforms like storEDGE or SiteLink price better because reliable data reduces perceived risk. Don’t overlook property taxes; a $50,000 annual bill can jump to $140,000 after a sale-triggered reassessment, compressing the NOI buyers will pay for. Oakside helps sellers identify and address these value leaks before going to market.