Economics, Housing, & Commercial Real Estate Analysis

Keepin' It Real 

Apartment REITs
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Data Center REITs
Mall REITs
Net Lease REITs
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  • Alex Pettee, CFA

Storage REITs: The Hotel California Of Real Estate

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  • 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.

Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Healthcare REITs
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