PSB - Public Storage sees some upside to demand from higher interest rates

Higher interest rates, surging home prices, and limited supply are already constraining home sales, which is one traditional driver of self-storage demand. But for Public Storage (NYSE:PSA), higher interest rates may be fueling demand from another channel, said CEO Joe Russell at the Nareit REITweek conference Wednesday. "If you can't afford that next bigger house, storage can be a sensible alternative," Russell said. Furthermore, the shift to hybrid work models also has been generating new customers.  "Overall, demand across all of our markets continues to be quite strong -- from both new customers and existing customers," he said. Storage is seen as an extension of home, and that's helping demand as well. Even with the robust demand, the company is seeking to improve efficiency through digitalization. Its e-rental platform is driving over 50% of Public Storage's (PSA) move-in volume. The company is also using digitalization as a way to help

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Public Storage sees some upside to demand from higher interest rates