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1 Aug, 2023
Analysis | Latest
Industry Consolidation Sparks Optimism for Long-Term Rate Stability
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Written by James McLean

James McLean is the Head of Business Development at Radius+. James helps maintain external relationships with clients and assisting internally with the sales process. He also, manages internal data processes working alongside the operations team to ensure we are supporting high level data quality.

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We are seeing a lot of acquisitions activity in the Self Storage Industry. Most notably, Extra Space Storage has finished its acquisition of Life Storage consolidating into the biggest REIT in the industry with over 3,500 locations. Public Storage has also just acquired Simply Self Storage from Blackstone, a 127 wholly-owned store portfolio.

Seeing more consolidation in the industry means more long term rate stability. The REITs have the largest war chests and operational systems to set the market price for units. These mergers predict that there will be higher rates in the long term, as well as pricing stability.