- While it was the second worst-performing sector in 2019 and fundamentals for 2020 were projected to be the worst in years, it has been a huge outperformer in 2020.
- First, the pandemic and ensuing recession has halted or cancelled construction of many self-storage projects that will bring down future supply.
- Second, there have been many unique factors of 2020 that have had positive effects on the four D's of demand: dislocation, death, divorce, and downsizing.
- Despite the underweight to self storage in the Chilton REIT Composite, the recent changes in the supply and demand outlook have made us constructive on the sector.
For further details see:
Essential REIT Evaluation: Self Storage