Self-storage REITs continue to draw investor attention for their steady performance, even as 2025 presents a mix of challenges and opportunities. Self-storage REITs own and manage storage facilities, renting space to both individuals and businesses. While their designs have evolved from simple garages to modern, multi-story, tech-enabled centers, the core purpose of providing convenient storage has remained unchanged.
The sector is often regarded as recession-resistant due to its wide range of demand drivers. Homeownership shifts, life transitions such as marriage or retirement, and lifestyle changes like decluttering or working from home all boost utilization. Seasonal needs, including student storage during school breaks, further support consistent demand for self-storage REITs.
However, in 2025, self-storage fundamentals have softened slightly due to sluggish home sales. According to Nareit’s REIT Industry Tracker for Q2 2025, year-over-year net operating income (NOI) and same-store NOI growth stood at 0.8% and -1.9%, respectively. These numbers suggest temporary headwinds tied to broader housing market slowdowns.
By the end of October 2025, the self-storage sector posted a total return of -6.2%, ranking ninth among 13 REIT equity sectors. Data from Nareit’s Active Manager Tracker showed that active REIT managers trimmed exposure to the sector, holding it at just 94% of its benchmark index weight — a sign of cautious short-term sentiment.
Despite these softer fundamentals, self-storage REITs remain financially strong. Nareit’s Q2 2025 data revealed that fixed-rate debt made up 82% of total debt, and unsecured debt accounted for 94.8%. This structure gives the sector resilience, protecting it from interest rate volatility and allowing continued access to capital on favorable terms.
In the FTSE Nareit All Equity REITs Index, the self-storage sector includes five key players: Public Storage (PSA), Extra Space Storage Inc. (EXR), CubeSmart (CUBE), National Storage Affiliates Trust (NSA), and SmartStop Self Storage REIT, Inc. (SMA). Together, these companies represent the leading edge of operational efficiency and innovation in the storage industry.
Green Street estimates that sector occupancy rates will remain steady at approximately 93% over the next several years, demonstrating continued customer retention and stable cash flows. Nareit analytics further showed that public equity REITs collectively owned 7,830 self-storage facilities across the United States by the end of 2024 — evidence of the industry’s scale and deep integration in local markets nationwide.
While current market conditions may be soft, the sector’s disciplined balance sheets, strong occupancy, and defensive nature position self-storage REITs to remain a solid long-term investment choice in the commercial real estate landscape.
