Real estate

Self-storage: What real estate investors need to know

Self storage: What real estate investors need to know
Key takeaways
Broad demand base and durability
1
The resilience of the self-storage sector was especially evident during the pandemic driven by job growth, household formations, housing tenure shifts, life events, and small businesses demand.
Simple operating model
2
Capital expenditure requirements are the lowest by far of all property sectors due to minimal re-tenant cost.
Increasing institutional focus
3
Scale and improved revenue management and marketing programs could drive net operating income growth and lead to yield compression.

There’s more to self-storage than just housing your stuff. It can also play an important role in a real estate investment portfolio.

Strong fundamentals and a manageable supply have driven the performance of this under-the-radar real estate sector, which relative to the traditional core sectors has proven attractive and durable over the past decade. Job growth, shifts in housing, life changes, and small business usage are all-weather drivers. The pandemic created incremental demand too.

Get the full story about self-storage investing with our in-depth report

Our investing lens: Consume, Live, Innovate, and Connect (CLIC)

The Invesco Real Estate (IRE) team takes a unique approach to investing — focusing on evolving secular themes and demand drivers in sectors where we Consume, Live, Innovate and Connect (CLIC). Get a deep dive providing education, fundamentals, and performance on one of the ten sectors within CLIC each month.

The Invesco Real Estate (IRE) team takes a unique approach to investing focusing on evolving secular themes and demand drivers in sectors where we Consume, Live, Innovate and Connect (CLIC). The self-storage sector is highlighted of the ten sectors.

Source: Invesco Real Estate. For illustrative purposes only.