Self Storage Services NAICS 531130

Mar 23, 2026 - Public Storage to Acquire National Storage Affiliates

• The Wall Street Journal reports that Public Storage agreed to acquire National Storage Affiliates in an all-stock deal valued at $5.63 billion, creating a self-storage company with a combined market capitalization of about $57 billion. The transaction, valued at $10.5 billion, including debt, will add more than 1,000 properties to Public Storage's portfolio, totaling 69 million rentable square feet and 550,000 units across 37 states and Puerto Rico. The companies expect to generate $110 million to $130 million in annual financial benefit within three to four years, with the deal accretive to funds from operations per share in the first year. The acquisition is expected to close in the third quarter, pending shareholder approval and customary conditions.
• A growing number of homeowners are struggling to sell properties as high prices and elevated mortgage rates continue to dampen buyer demand, according to MarketWatch. The National Association of Realtors (NAR) reports that 2025 existing home sales fell to a 31-year low. In March, Google searches for “Can’t sell house” reached record highs, surpassing levels seen during the pandemic and the 2008 financial crisis. Homes are taking longer to sell, sitting an average of 8 days longer than a year ago, with well-priced homes going under contract in about 47 days and others lingering for up to 88 days, according to Redfin. Inventory is rising as new listings increased 4% in 2025, while buyers have not returned at the same pace, creating a 44% gap between sellers and buyers. The sluggish housing market has slowed demand for self-storage services, as consumers typically rent storage space before or after buying or selling a home.

• Self-storage rent growth remains sluggish amid an oversupply of available space relative to demand. A weak housing market, softening consumer spending, and labor market jitters have reduced self-storage demand. Advertised rates for new customers, also called street rates, decreased 1.1% year over year in February 2026, according to Yardi Matrix. The average metro rate for medium (10x10 & 10x15) climate-controlled self-storage units decreased by 0.9% year over year in February 2026. Average metro rates for medium (10x10 & 10x15) non-climate-controlled units fell 1.1% year over year. Major self-storage REITs generally reported stabilizing Q4 2025 results, but demand remains soft and is strongly tied to local self-storage supply conditions. Many large self-storage REITS expect conditions to remain challenging in 2026, as many anticipate flat to slightly negative growth.
• Self-storage insiders are mostly optimistic that the industry may begin to turn around after several years of market weakness, according to Inside Self-Storage. Acquisitions in the industry have been subdued as high interest rates made dealmaking more expensive and property valuations dropped. Compared to the 2022 peak, self-storage asset values fell 25% by 2025, according to real estate analytics firm Green Street. As investor interest gains momentum, buyers are expected to focus on regions with solid population growth, such as the Sunbelt. Institutional investors, including REITs, are expected to drive the bulk of transactions as smaller investors exit the market. The frozen housing market has been an impediment to self-storage rent growth, but home sales are expected to improve as mortgage rates move lower. The slowdown in new supply is also supportive of rent growth.