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apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
hotel REITs
Timber REITs
healthcare REITs
Billboard REITs
shopping center REIT
Casino REITs
cannabis REITs
farmland REIT investing
mortgage REITs
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  • Alex Pettee, CFA

Storage REITs: The Hotel California Of Real Estate

  • To read the full report, click here to visit Seeking Alpha!

  • Self-storage units are the "Hotel California" of the real estate sector: once you’re checked-in, "you can never leave." A sticky tenant base has supported the sector despite record supply growth.

  • For self-storage REITs, the business is almost too good. Developers and new operators have flocked to the sector in recent years, adding new supply at a furious rate, weakening fundamentals.

  • The operating efficiency and relative simplicity of the self-storage business are second to none in the real estate sector, where properties can break even at sub-50% occupancy rates with sub-par management.

  • Storage REITs hit "rock bottom" in 2018 and have turned the corner since then. Storage REITs have jumped nearly 30% this year as 2Q19 earnings continued the positive momentum.

  • Essentially an extension of the residential REIT sector, the demographic-driven reacceleration in multifamily and single-family rent growth since bodes well for a continued recovery into the 2020s.

For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Apartments, Homebuilders, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.