Self-storage commercial real estate was once considered a small, "mom and pop" business opportunity, but things have changed, and this has evolved into a mainstream CRE asset. Despite fluctuations in CRE, self-storage remains resilient and Covercy can help GPs and investors tap into this stable, yet growing sector. Here, we'll explore how Covercy can add value to your investments and streamline your operations.
A Closer Look at the Self-Storage Market
Self-storage continues to be seen as a relatively recession-proof CRE asset, due to its steady demand and relatively low operating costs. With housing turnover and the trend towards smaller and more affordable living spaces, you can expect continued growth. In Q1 of 2025, self-storage sales reached about $855 million, up 37% from the previous year and demand remains strong. Geography plays a key role in this asset class as well. For instance, markets in the South and West are outperforming other areas in the U.S.
In addition, self-storage CRE comes with many value-add plays. Investors can acquire underperforming or older self-storage facilities and improve operations and upgrade them in order to drive occupancy. Using dynamic pricing to adjust rents based on demand can also help investors improve ROI, and this sector also tends to have lower labor costs.
Expect an emerging focus on self-storage facilities that run on green energy, with an increase in utilizing solar panels and other sustainable initiatives. AI will also play a key role in the future of self-storage commercial real estate, and investors can use it to make data-driven decisions on site selection or rent optimization. You may also see self-storage facilities used for mixed-use development, such as integrating logistics operations.
Covercy's Role in Simplifying Self-Storage CRE
GPs and investors can access performance dashboards with real-time visibility into important metrics that will help GPs implement cost-saving, efficiency measures. Our transparent investor portal allows relevant parties insight into each deal, and our platform facilitates capital raising and flexible fund structures.
Self-storage continues to be a compelling CRE asset, with stabilized demand, resilient cash flows, and long-term growth. GPs and investors must be selective and leverage operational efficiencies, like what our investment management platform provides. According to the Self Storage Association's industry research, the sector has shown consistent growth over the past decade. Covercy can help you navigate sourcing, risk management, and capital structuring, maximizing the value of each self-storage CRE deal. Are you ready to connect? Get in touch with Covercy today for a free demo.