Market Update: 2023- Continued High Demand for Self Storage Properties
We anticipate the demand for self-storage properties to be robust throughout 2023. We believe class A properties through Class C properties in rural areas will attract buyer interest. Our experience shows buyers are looking for stable cash flows that were even recession-proof.
The success of Self Storage facilities has become a favorite with Income Property investors and is viewed favorably along with multi-family. We are getting calls from investors nationwide looking for northwest properties. Increased population and heavy investment in apartment buildings throughout the northwest should bode well for self-storage operators.
Industry reports that are available to investors show the opportunity for further consolidation in the self-storage industry. This supports due diligence efforts from buyers looking to validate their investment decisions.
In summary, the trends of interest to northwest self-storage owners for 2023 are:
- The Northwest is an attractive market for buyers of self-storage units
- As hard as it is to realize, Interest rates are back to normal if you look over recent decades and they will probably moderate by the second half of ’23 and throughout the 2024 election cycle.
- CAP rates will be above Lending Rates for many properties.
- Still… Class A through Class C owners even in rural areas we see a good opportunity to have a liquidity event