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.
Although self-storage fundamentals have been hindered by a sluggish housing market, they appear to be stabilizing. Data from Nareit’s quarterly REIT Industry Tracker as of the second quarter of 2026 (the most recent data available) indicated that the sector’s occupancy rate increased from 88.9% to 90.7% over the past four quarters. The sector’s year-over-year net operating income (NOI) and same store net operating income (SS NOI) growth rates were 2.3% and -0.1%, respectively.
Green Street analyst Spenser Glimcher told Nareit that a “quiet supply environment is the silver lining” for self-storage today. New supply that came online in the last three to four years has finally been mostly absorbed, resulting in improving operating fundamentals, she said. At the same time, development starts are slowing from an already low base.
The self-storage sector posted a total return of -10.0% in 2025, placing it tenth among the 13 REIT equity sectors. Self-storage has experienced a reversal of fortune this year. Through the end of October , it ranked fourth with a total return of 26.5%. Year-to-date outperforming sectors included lodging/resorts (55.2%), specialty (31.9%), and data centers (30.5%).
Nareit’s Active Manager Tracker indicated that dedicated REIT active managers have generally held their exposure to self-storage steady in the second quarter of 2026 (the most recent data available); quarter-over-quarter and year-over-year changes were 0.1% and -0.1%, respectively. Active managers held the sector at a slight overweight, 107% of its index weight.
1.8%
According to Green Street, self-storage space is cheaper today (1.8% of median household income) than pre-COVID (2.3% of median household income).
95.7%
As of the second quarter of 2025, Nareit’s REIT Industry Tracker data showed that self-storage unsecured debt accounted for 95.7% of the sector’s total debt.
$276.2 million
Nareit analytics indicated that self-storage REITs were net buyers in the second quarter of 2026, acquiring $276.2 million of properties.
Sector Spotlight
- Constituents: 4
- One-Year Return: 21.33%
- Three-Year Return: 16.41%
- Five-Year Return: 2.12%
- Dividend Yield: 4.03%
- Market Cap: $97.72 billion
- Dividends Paid (2026: Q2): $1.2 billion
- NOI (2026: Q2): $1.8 billion
Source: FTSE, Nareit REIT Industry Tracker | As of Oct. 30