With the self-storage industry on a roll of late, one Colorado-based REIT is betting that storage will continue to be a good investment.
Commercial Property Executive has a story detailing National Storage Affiliates Trust’s forming of a joint venture with a major state pension fund to purchase a 66-property iStorage portfolio for approximately $630 million. The deal includes between 4 and 5 million square feet of rentable self-storage space in more than 36,000 storage units across 12 states.
NSA also acquired the iStorage property management company and brand in a separate deal.
The purchase strengthens NSA’s hold in many of its existing markets — most notably California and Florida, where iStorage had a major presence — and introduces it to new markets in New Jersey, Ohio, Pennsylvania, and Virginia.
Marcus & Millichap Report
NSA isn’t alone in seeking out self-storage property. Marcus & Millichap has released a research report that projects good things for the self-storage market in the second half of 2016. Demand for storage, combined with a lack of supply, is driving a rise in occupancy and rents. That’s true for both climate-controlled facilities and properties without climate controls.
Investors are likely drawn to self storage because of its status as a secure option for long-term profits. With that in mind, look for similar acquisitions of storage properties the rest of the year.