The 2026 self-storage market is shaping up to be better than 2025, but it will not be a free-for-all. Buyers, sellers, and developers are all entering a market where money is once again available, but it's smart and selective.
In 2024 and much of 2025, higher borrowing costs and tighter lending standards weighed on commercial real estate, limiting capital flows and keeping many investors on the sidelines. Investors pushed for higher yields, cap rates moved out, vacancy increased, rents softened, and the ability to raise in‑place rates faded. By mid‑to‑late 2025, investment activity started to pick up, especially where pricing had reset. Investors wanted back in the market, transaction volumes ticked up, and debt markets eased compared with 2024 as real estate yields looked more attractive than bonds and stocks.
Much of the opportunity in this period came from market dislocation. Such as: motivated sellers, pricing corrections, and better financing terms for some buyers. Demand for storage held up, supported by tight housing supply, renter movement, and small businesses needing flexible space, while new development slowed in many places. This allowed well‑located, stabilized facilities with solid management to hold or grow value, even as weaker locations and less efficient operators felt more pressure.
Looking ahead, 2026 is expected to bring a broader recovery with a more optimistic feel. Capital deployment should increase as fundamentals slowly improve, along with lenders and institutional investors becoming more active as financing settles. Investor confidence is building around expectations for firmer rental rates, lower vacancy, and more money flowing into CRE for self-storage, especially in markets that worked through the toughest part of the 2022–2024 reset. Interest rates are likely to fall below recent peaks but stay well above the era of very easy money, meaning the real winners in 2026 will be owners who focus on operations, location, and relationships rather than simply counting on cap rate compression.
At Superior Capital Advisors, we realize the market has many moving pieces at all times, and every owner’s situation is unique. Our team is discussing proactive strategies with owners and investors daily. Whether you’re thinking about selling, refinancing, or want to understand where the market is headed, we’re here to help. We’d love the chance to connect and provide a free, confidential valuation of your property.
