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A report from Cushman & Wakefield reveals that transaction volume of sales in the U.S. self-storage sector cooled in the first half of 2023, with trailing 12-month volume down by 57% year-over-year after reaching peak levels in 2022. The increased cost of debt and lack of overall liquidity has created headwinds for higher leveraged owners while providing opportunities for well capitalized investors. Occupancy stabilized near 90% during Q4 2022 and has remained nearly flat through H1 2023, however newer properties with state-of-the art amenities such as climate controlled and secured units are maintaining their value.

Tim Garey, Managing Director at Cushman & Wakefield commented: “Self storage fundamentals remain healthy at midyear point 2023; conditions have cooled from peak levels representing a normalization after a period accelerated growth” He further added “Rate hikes will bring self storage market back to historical levels which points to a favorable outlook”