Self-storage showed surprising strength in the final months of 2025, outpacing many other commercial real estate sectors that were still struggling with high borrowing costs and slower deal volume.
That’s the takeaway from the latest research from StorageCafe, which reports that investor interest in self-storage surged during the third quarter of the year.
According to StorageCafe, buyers poured back into the sector as the third quarter progressed. The total value of self-storage assets that traded hands from July through September reached $1.6 billion, a dramatic increase from the $988 million recorded during the same period in 2024.
That 62% year-over-year jump signals renewed confidence in a sector that has weathered shifting consumer behavior, elevated construction costs and the broader commercial market’s uneven recovery.
The number of properties changing hands climbed, too. More than 260 self-storage facilities were sold during the third quarter, an increase of 32% from one year earlier. Buyers weren’t just chasing more deals, either, they were targeting more space. In total, 18.4 million square feet of storage space traded during the quarter, up 44% from the third quarter of 2024.
Industry analysts say these numbers reflect a shift in investor sentiment. After several years of cautious underwriting and selective acquisitions, many buyers appear ready to return to a sector that continues to demonstrate steady demand. Consistent occupancy levels, month-to-month lease structures and the relative affordability of most self-storage assets have made this niche especially appealing during a period of broader economic uncertainty.
The report also highlights an important trend: Self-storage remains a market dominated by small and mid-sized owners. Despite the uptick in activity, most properties are still controlled by local or regional operators rather than major institutional investors. But that doesn’t mean institutional players are sitting on the sidelines.
StorageCafe found that real estate investment trusts remained key participants in third-quarter activity. REITs were responsible for nearly $354 million in acquisitions, about 22% of all sales completed during the period. While that share was lower than the 32% reported in the second quarter, the actual dollar amount represented a significant increase of more than $100 million above REIT purchases earlier in the year.
Pricing metrics showed a similar gap. Properties acquired in transactions involving REITs averaged $146 per square foot during the third quarter. Deals without REIT involvement averaged $133 per square foot. That spread suggests that larger, more well-capitalized buyers are still willing to pay premiums for properties that fit their long-term strategies, especially facilities in fast-growing metropolitan areas or those positioned for operational efficiencies.
Together, these numbers point to a sector that continues to outperform expectations, even as other corners of the commercial real estate market navigate sluggish leasing, tighter credit and shifting tenant preferences.
