Real Estate Journal Online

Thanks to “impressive returns” in 2010, the self storage niche appears poised to gain strength this year and attract investor interest[1]. Self-storage REITs (real estate investment trusts) yielded total returns of about 30 percent last year, creating a rise in investor interest in the sector and causing some experts to predict that at least this arena has “bottomed out and is on the upswing.”

Many self-storage investors are expecting rising returns in same-store sales growth in the coming year, while they also expect an increase in net operating income[2]. There is plenty of room for growth in this industry as well. There are only four self-storage REITs in the market at this time, leaving plenty of room for private investors as well as more players in the REIT “game.” In fact, only 13 percent of the self-storage market is owned by REITs. According to the National Association of Real Estate Investment Trusts (NAREIT), the first two months of 2011 alone yielded 10 percent returns, following up a strong 2010 showing.

Are you considering getting involved in self storage in 2011?

Thank you for being part of REJournalOnline’s Investor Academy!

Let us know what you think of this exciting sector of the industry in the space below.

---

[1] http://www.extraspace.com/news/post/2011/04/04/Investor-Interest-in-Self-Storage-Niche-Grows-As-Annual-Returns-Hold-Strong.aspx

[2] http://nreionline.com/finance/news/self_storage_reits_0404/