-

KBRA Releases Research - CRE Secular Trends: Self-Storage Continues to Lock It Up

NEW YORK--(BUSINESS WIRE)--KBRA releases research on self-storage and the effects that regional migration and demographic trends have had on this sector.

In recent years, key self-storage demand generators have included people migration and not having enough space at home. Together, they account for over two-thirds of self-storage renters according to Storage Cafe’s Self Storage Industry Trends December 2022 update.

Self-storage development as a percentage of existing inventory appears to be tracking the regional migration movement, which has seen the South and West continue to gain the most new residents. Based on Yardi Matrix data as of December 9, 2022, of the 19 metros where units are under construction or in the planning stages and form 10% or more of existing inventory, nine were in the South and seven were in the West. Together, these two regions accounted for close to 85% of this self-storage development stock.

Demographics are favoring continued demand. With the number of retiring baby boomers potentially downsizing over the next couple of decades, this population cohort is expected to continue to provide demand for self-storage. Additionally, millennials are the largest population group and 40% are self-storage users according to StorageCafe in their August 2022 survey. Their demand is not expected to wane as many live in urban settings and in small, expensive living spaces, which could contribute to a more transient lifestyle and continuing need for storage space.

The report is part of KBRA’s ongoing series on the secular trends that are transforming the “new normal” landscape in commercial real estate (CRE) across property types.

Click here to view the report.

Related Publications

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Larry Kay, Senior Director, CMBS Ratings Surveillance
+1 (646) 731-2452
larry.kay@kbra.com

Roy Chun, Senior Managing Director, CMBS Ratings Surveillance
+1 (646) 731-2376
roy.chun@kbra.com

Business Development Contact

Michele Patterson, Managing Director
+1 (646) 731-2397
michele.patterson@kbra.com

KBRA

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Larry Kay, Senior Director, CMBS Ratings Surveillance
+1 (646) 731-2452
larry.kay@kbra.com

Roy Chun, Senior Managing Director, CMBS Ratings Surveillance
+1 (646) 731-2376
roy.chun@kbra.com

Business Development Contact

Michele Patterson, Managing Director
+1 (646) 731-2397
michele.patterson@kbra.com

More News From KBRA

KBRA Releases Research – The Geography of Auto Loan ABS Performance

NEW YORK--(BUSINESS WIRE)--KBRA releases research examining state-level auto loan ABS performance across the U.S. Most auto ABS transactions are geographically diversified, limiting the impact of any single state on overall deal performance. However, geographic differences may be more relevant for whole-loan buyers and for securitizations with outsized concentrations in states performing meaningfully above or below expectations, particularly when those concentrations differ from a shelf’s histo...

KBRA Assigns Preliminary Ratings to PRKCM 2026-AFC6 Trust

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes issued by PRKCM 2026-AFC6 Trust, a $327.8 million non-prime RMBS transaction. The underlying collateral consists of 793 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) representing 98.4% and 1.6% of the pool, respectively. The transaction includes a meaningful concentration of collateral that KBRA considers non-prime. All of the loans were origin...

KBRA Assigns Preliminary Ratings to Reach ABS Trust 2026-3

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to five classes of notes issued by Reach ABS Trust 2026-3 (“Reach 2026-3”), an unsecured consumer loan ABS transaction. Credit enhancement consists of overcollateralization, subordination of junior note classes (except for the Class E notes), a cash reserve account funded at closing, and excess spread. This transaction represents Reach Financial, LLC’s (“Reach”, the “Servicer” or the “Company”) third term ABS securitization in 2026 and...
Back to Newsroom