By Jeff Shouse
After a challenging period marked by economic uncertainty and tightening monetary policy, the self-storage market is showing clear signs of transition from headwinds to tailwinds. The phrase “cautiously optimistic” has long echoed throughout the industry, but it’s time to drop it… we should simply be optimistic.
Deal flow is expected to rebound as market confidence returns, fueled by a narrowing bid/ask spread that is starting to unlock transactional activity. Stabilizing street rates and the continued success of adaptive revenue strategies further highlight the sector’s underlying resilience. With the Federal Reserve signaling a potential easing of monetary policy into late 2025 and 2026, financial pressures that once hampered growth are beginning to ease, laying the groundwork for renewed momentum.
Moreover, investment capital is re-engaging, and lenders are becoming more active, signaling a broader shift in sentiment. Secondary and tertiary markets, which proved their value during previous cycles, remain critical opportunity zones for investors seeking growth and yield. As the housing market shows early signs of recovery (what and see moment), this could serve as another meaningful tailwind for storage demand.
Operators are entering this next phase with stronger balance sheets, refined pricing tools, and valuable lessons learned from the last downturn. The playbook has evolved—and this time, the industry is better equipped to scale with discipline and resilience. The tone across the industry is shifting, resilience continues to prevail, and the foundation for long-term growth remains intact. Optimism isn’t just warranted; it’s anchored in real, observable progress.
Jeff Shouse, MAI, CRE, is Executive Vice President (Western U.S.) at Colliers, focusing on valuation and advisory services at Colliers. Colliers is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering and Investment Management – the company has a proven business model, an enterprising culture and a unique partnership philosophy that drives growth and value creation. Fueled by visionary leadership, Colliers has consistently delivered approximately 20% compound annual investment returns for shareholders for 30 years. To learn more, click here.
