When it comes to self-storage investment, timing can make all the difference. The industry has seasonal highs and lows like any other market. It’s easy to get swept away in the excitement of investing, but Investment Real Estate is here to help you take a calculated approach.
What Are the Trends in the Self-Storage Market Throughout the Year?
The self-storage market fluctuates throughout the year. Understanding the seasonal trends will help you determine when to invest in self-storage and when holding out is the prudent choice.
Summer is the busiest time of year for the self-storage market. In late May through August, there are more active buyers and sellers than at any other time of the year. Competition is at a high during this time, so properties sell at higher rates than other seasons. The heat dies down as fall approaches.
Supply and demand both decline between September and November, but there’s still a fair amount of activity. Property owners begin to feel the pressure to sell, meaning buyers can sometimes find a better deal than they would have in the summer.
Winter brings the self-storage market to its calmest juncture. Supply and demand are both low, but those in the market are motivated to make a transaction. The market begins to regain momentum in the spring, leading to increased competition for buyers.
The Best Times to Buy and Sell Self-Storage Facilities
if you’re considering getting in or out of the self-storage industry, here’s when you should make your move:
- For buyers: The best time to invest in self-storage real estate would be either in the fall or winter. Buyers can find great rates when the market starts to slow down. There will be fewer properties available, but there will also be less competition for those facilities.
- For sellers: Sellers can get the best returns in the spring or summer. The market builds momentum in the spring, and curb appeal is much higher than in the dead of winter. Summer brings heaps of competition for buyers, meaning better offers will be on the table.
Stay a Season Ahead With Investment Real Estate
IRE is here to help investors find, maintain and sell self-storage facilities at high profit margins. We encourage you to read our blog to expand your understanding of the self-storage market or contact us online to discuss our brokerage services.