The COVID-19 pandemic disrupted people’s lives in fundamental ways. Many people were suddenly working or attending school remotely, and spare rooms previously used for storage became offices and classrooms.
The repurposing of space at home helped fuel a need for additional storage space, as did the subsequent housing boom: Many renters became homeowners, and many homeowners found that their life situations and needs had changed.
Whether moving to the suburbs, downsizing, or retiring, people need clean and secure storage space. Addressing the need for storage space generated by these conditions are self-storage REITs.
In every quarter since the beginning of 2010, self-storage REITs have been net acquirors of real estate, and the operational performance and returns of the sector reflect the consistency and demand for the product they offer.
Self-storage REITs paid out $2.7 billion in dividends in both 2019 and 2020, $3.0 billion in 2021, and have paid $1.8 billion through the second quarter of this year.