Self-storage REITs own and manage storage facilities and collect rent from customers. Self-storage REITs rent space to both individuals and businesses. While the designs of self-storage facilities have evolved dramatically over the decades from glorified garages to multi-story, tech-enabled facilities, the functionality and use of storage space has changed little over time.
Having a myriad of demand drivers, the self-storage sector is often described as being recession resistant. Primary drivers include home sales/ownership and life events like marriage, children, divorce, retirement, and death. Work-from-home and decluttering trends, as well as seasonal storage by students, also bolster demand.
In 2025, self-storage fundamentals have been hindered by sluggish home sales activity. Data from Nareit’s quarterly REIT Industry Tracker as of the second quarter of 2025 (the most recent data available) indicated that the sector’s year-over-year net operating income (NOI) and same store net operating income (SS NOI) growth rates were 0.8% and -1.9%, respectively.
Through the end of October, the self-storage sector posted a total return of -6.2% in 2025, placing it ninth among the 13 REIT equity sectors. Nareit’s Active Manager Tracker indicated that dedicated REIT active managers lessened their exposure to self-storage in the second quarter of 2025 (the most recent data available); the sector was held at just 94% of its index.
Self-storage REITs continue to maintain well-structured balance sheets. As of the second quarter of 2025, Nareit’s REIT Industry Tracker data showed that fixed rate and unsecured debt accounted for 82.0% and 94.8% of total debt, respectively. Disciplined balance sheets and access to unsecured debt provide competitive advantages to these REITs.
5: In the FTSE Nareit All Equity REITs index, the self-storage sector has five constituents: Public Storage (PSA), Extra Space Storage Inc. (EXR), CubeSmart (CUBE), National Storage Affiliates Trust (NSA), and SmartStop Self Storage REIT, Inc. (SMA).
93%: Green Street has estimated that REIT self-storage sector occupancy rates will likely remain fairly consistent over the coming years, maintaining a level of approximately 93%.
7,830: Nareit analytics indicated that public equity REITs owned 7,830 self-storage facilities across the U.S. as of year-end 2024.
Sector Spotlight
FTSE NAREIT Equity Self Storage
- Constituents: 5
- One-Year Return: -13.83%
- Three-Year Return: -0.35%
- Five-Year Return: 8.15%
- Dividend Yield: 4.68%
- Market Cap: $83.59 billion
- Dividends Paid (2025: Q2): $1.14 billion
- NOI (2025: Q2): $1.75 billion
Source: FTSE, Nareit REIT Industry Tracker | As of Oct. 31