Self-storage is a small but high-performing sector

Learn how self-storage can fit into a diversified portfolio

May 30, 2024

Overview:

Self-storage is a relatively new asset type in the world of institutional investment and still represents a small piece of the overall institutional investment universe. Self-storage data became available in the NCREIF database beginning in 3Q2002.

At the beginning of the data, four self-storage properties worth $183 million accounted for the dataset. But that has grown steadily over time—likely as a result of its impressive performance—and as of 4Q2023, there are 1,090 self-storage properties worth $23.6 billion in the NCREIF database.

While it has emerged into a mature asset class in the US over the past 20 years, self-storage is in its infancy in other parts of the world, including Europe, where the amount of self-storage per capita is a fraction of that in the US.

Want to learn more about how self-storage can fit into a diversified portfolio?

Self-storage is a small but high-performing sector

Joshua Scoville
Head of Global Research

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PREA Quarterly

Read insights from Josh Scoville and Erik Thomas of Hines Research on how self-storage presents a compelling risk-adjusted return.

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This article originally appeared in PREA Quarterly’s Spring 2024 edition

Disclaimer


The content herein and in the report is provided for informational purposes only. Nothing above or in the report constitutes investment, legal, or tax advice or recommendations. Such content should not be relied upon as a basis for making an investment decision and is not an offer of advisory services or an offer to invest in any product or asset class. It should not be assumed that any investment in an asset class described herein will be profitable. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice. Opinions or beliefs expressed in these materials may differ or be contrary to opinions expressed by others. Certain information above and in the report has been obtained from third-party sources. Hines has not independently verified such information.