REIT - Storage REITs: Urban Exodus Catalyzes Rebound

• Give Me Space! The pre-pandemic trends towards minimalism and smaller homes in dense urban markets have been reversed by the pandemic as households seek additional space and more at-home amenities.
• The "urban exodus" has been a boon for self-storage REITs, which had entered the pandemic as perennial underperformers with challenged fundamentals and a strained outlook amid oversupply headwinds.
• Catalyzed by the suburban housing boom and the desire for more space, self-storage demand has rebounded sharply since mid-2020, and so too has the performance and outlook for storage REITs.
• Storage demand is driven by "change" and there will be no shortage of that as mobility rates normalize post-pandemic. The demographic-driven housing boom bodes well for a sustained recovery into the mid-2020s.
• Supply growth remains a concern, but construction spending has normalized as development yields compress. Rental rates surged in late 2020 while external growth opportunities should remain plentiful.

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