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Another force driving the growth: investors. Frank DeSalvo leads self-storage investment sales at Franklin Street Real Estate Services. At the same time migration grew during the pandemic, he said, “we had this really cheap capital — 3% and 4% interest rates — and it needed a place to go.”
Many of the traditional commercial real estate investments, like apartment buildings, shopping centers and office space, weren’t doing so hot.
“Self-storage really kind of came to a new level during that time period, because it was very safe,” DeSalvo said.
Safe, because self-storage has held up pretty well during recessions, when more people and businesses have to downsize or move. But now, DeSalvo said, some markets have too much storage space, and delinquency and vacancy rates have been rising.
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