It wasn't more than a year ago that commercial real estate investors found a quiet and underpublicized sector they could buy into with little risk and little churn. But today, quiet is not an adjective for the self-storage investment market. A combination of huge transactions and dropping rent prices in the sector have upended what was considered an easy and tranquil alternative investment to troubled office space and multifamily housing. This month, the sector's fireworks reached maximum visibi
The bloom is off self-storage investment, which became a can't-miss opportunity during the pandemic as people cocooned in their homes, built offices and gyms and moved their displaced belongings. But rental prices for new storage tenants are dropping at unprecedented levels, and investors who went all-in in the past two years are now feeling the pain. According to Green Street, self-storage prices for new customers dropped 10% in the first quarter, following a similar drop in the fourth quarter