Improving Liquidity in Fragmented Market
- Although consolidating, sector continues to be fragmented
with the top-20 operators owning 20% of the square footage.
- Liquidity and institutional allocations have improved
liquidity and driven cap rates down.
Value Creation Opportunities
- Yield management similar to lodging can help drive top
line, while cost controls similar to other small asset investments
(for example, manufactured housing communities) are necessary
to drive bottom line results.
- Strong and focused management will provide for competitive
differentiation in market.
Resilient in Downturn
- Self storage is “somewhat” resilient in an
- Small investment dollars per property of $2 to $5 million
allows for portfolio diversification.