Is Now a Good Time to Sell Self Storage in 2026?
Key Takeaways
- The 2026 self storage market is healthy but nuanced — it’s neither a “sell everything” moment nor a “hold at all costs” environment.
- Institutional capital is still flowing aggressively into self storage. PE funds, REITs, and family offices remain active buyers with significant dry powder.
- Same-store revenue growth has moderated from the unsustainable highs of 2021–2022, but the industry’s fundamentals remain strong.
- New supply is a real concern in certain markets — know your local pipeline before making decisions.
- Interest rates have stabilized, which has brought buyer confidence and transaction volume back.
- The answer to “should I sell?” depends on your specific situation, not the general market. We’ve included 5 questions to help you decide.
“Is it a good time to sell my self storage facility?”
We get this question every week. And honestly, the answer is never a simple yes or no — because the right time to sell depends on your facility, your market, your financial situation, and your personal goals as much as it depends on what the broader market is doing.
That said, the market conditions in 2026 matter. They set the table. And understanding what’s happening in the self storage industry right now helps you make a more informed decision about whether this is your moment.
We’re the team behind The Storage Brief. Here’s our honest, unvarnished take on the 2026 self storage market and what it means for owners thinking about selling.
The State of the Self Storage Market in 2026
Institutional Capital: Still Hungry
One of the most significant dynamics in self storage over the past decade has been the flood of institutional capital into the sector. REITs like Public Storage, Extra Space (now merged with Life Storage), CubeSmart, and National Storage Affiliates have been on acquisition sprees. Private equity firms — from the giants like Blackstone and KKR to mid-market funds — have raised billions specifically to buy self storage.
In 2026, that appetite hasn’t slowed.
The fundamentals that attracted institutional money in the first place are still intact: self storage has low maintenance costs relative to other real estate, fragmented ownership (creating acquisition opportunities), recession-resilient demand, and strong historical returns. Institutions now recognize self storage as a core real estate allocation, not a niche play.
What this means for sellers: there are well-capitalized buyers actively looking for facilities to buy. If you have a quality asset — even a mid-market, Class B property — there is likely institutional or semi-institutional interest. This buyer competition supports pricing.
Same-Store Performance: Moderation, Not Collapse
Let’s be honest about what’s happened to same-store performance. After the extraordinary revenue growth of 2020–2022 (some operators saw 15–25% annual revenue increases), the industry has come back to earth. Public Storage has guided for negative same-store revenue growth in recent quarters. Other operators have reported flat to low-single-digit growth.
This sounds alarming if you’re reading headlines, but context matters:
- The base is much higher. A facility generating $500K in revenue today was generating $380K pre-pandemic. Even with some normalization, income levels are structurally higher than they were.
- Occupancy has settled, not crashed. The industry surged to ~95% average occupancy during COVID. It’s now in the high 80s to low 90s in most markets. That’s normal. That’s healthy. That’s stabilized.
- Rate growth is moderating, not reversing. Street rates in many markets are flat or down slightly from peak levels, but operators are still pushing existing customer rate increases. The average in-place rent continues to climb.
Buyers understand this. They’re not underwriting for 2021-level growth, and they shouldn’t be. They’re underwriting for sustainable, long-term income — and they’re comfortable with where that income is.
The Supply Question: Know Your Market
This is the biggest risk factor in self storage in 2026, and it’s hyperlocal.
After years of strong returns, developers built a lot of new self storage. In some markets — parts of Texas, Florida, and other Sun Belt states — the new supply pipeline has been significant. When multiple new facilities open in the same trade area, they compete for tenants by lowering rates, and existing facilities feel the pressure.
In other markets, new supply has been limited. High construction costs (they’ve risen 30–40% since 2019), tighter lending for new development, and restrictive zoning have slowed the development pipeline.
What this means for you: The impact of new supply is not national — it’s about your specific 3–5 mile trade area. If you know that two new facilities are under construction within 3 miles of your property, that’s a factor to consider seriously. If your market has high barriers to entry and limited new development, that’s a tailwind.
We can help you assess the supply pipeline in your specific market if you’re not sure.
Interest Rates: Stabilized and Digested
Interest rates dominated the conversation from 2022 through 2024 as the Fed raised rates from near-zero to 5%+. That rate shock widened the bid-ask spread between buyers and sellers, slowed transaction volume, and caused real uncertainty.
By 2026, the market has largely digested the higher-rate environment. Rates have come down modestly from their peaks, and importantly, buyer expectations have adjusted. Lenders are active, underwriting is solid, and deals are getting done.
Higher rates relative to 2020–2021 have caused cap rates to expand modestly (meaning values are somewhat lower than the absolute peaks), but the adjustment has been orderly. Buyers have recalibrated their return requirements, and the market is functioning well.
If you were waiting for rates to drop back to 3% before selling — that’s probably not happening anytime soon, and you don’t need it to happen to get a strong sale price.
The Consolidation Wave: Still Rolling
Self storage remains one of the most fragmented real estate sectors. An estimated 25,000–30,000 facilities in the U.S. are owned by independent operators (mom-and-pops, small partnerships, individual investors). The publicly traded REITs and large private operators own a growing but still minority share of total supply.
This fragmentation is an engine for consolidation, and consolidation is the engine for transaction activity.
Large operators want to grow. They need to acquire to do it (organic development is slower and riskier). Every independent facility is a potential acquisition target. This dynamic supports transaction volume and pricing, especially for facilities that are well-located and well-run.
If you own one facility — or a small portfolio of two to five — you are exactly the type of seller that institutional consolidators are looking for. You represent an opportunity for them to add scale to their platform, realize operational synergies, and deploy capital.
Private Equity: Dry Powder Still Needs Deploying
Here’s a factor that many self storage owners underestimate. Between 2019 and 2023, private equity firms raised enormous amounts of capital earmarked for self storage acquisitions. These funds have defined investment periods — typically 3–5 years — during which the capital must be deployed.
Much of that capital is still looking for a home.
Fund managers are under pressure from their investors (pension funds, endowments, high-net-worth individuals) to put money to work. This creates urgency on the buy side that benefits sellers. PE firms aren’t waiting for the “perfect” deal — they’re actively pursuing good deals and competing with each other.
This is a real tailwind for sellers in 2026, and it’s one that won’t last forever. Once these fund vintages are fully invested, the next fundraising cycle will depend on market conditions at that time.
The Honest Assessment: Pros and Cons of Selling in 2026
Reasons the Market Favors Sellers
✅ Buyer demand is strong. Active institutional and private buyer pools with capital to deploy.
✅ Cap rates are historically attractive. Even after post-2021 expansion, cap rates remain compressed relative to historical norms. Your NOI is worth more today per dollar than it was pre-pandemic.
✅ Financing is available. Banks, CMBS lenders, SBA, and life companies are actively lending on self storage.
✅ Industry credibility is at an all-time high. Self storage is no longer an afterthought. It’s a recognized, institutional-quality asset class. That maturation supports pricing.
✅ You may be at peak NOI. If you’ve pushed rates aggressively and occupancy is high, your current income may be near its ceiling. Selling at peak income means selling at peak value.
Reasons to Think Carefully
⚠️ New supply in your market. If new competitors are opening nearby, your occupancy and rates could face pressure in the next 12–24 months. Selling before that impact hits may be wise — or waiting until the supply is absorbed may be better. It depends on the specifics.
⚠️ Same-store growth is slower. You’re not going to see 15% annual revenue growth. Buyers know this and are pricing for moderate growth. If you’re expecting 2021 valuations, you’ll be disappointed.
⚠️ Tax implications. Depending on your cost basis, depreciation recapture, and state taxes, a sale could trigger a significant tax event. (A 1031 exchange can help — see our guide on that topic.)
⚠️ What’s next? Where will you put the proceeds? If you sell a $4M facility generating $270K in NOI and put the after-tax proceeds in treasuries at 4%, are you better off? Maybe. Maybe not. The reinvestment question is real.
⚠️ Personal timing matters. Your health, your family situation, your energy level for managing the property, your other financial goals — these factors are often more important than market conditions.
Five Questions to Ask Yourself Before Deciding
Rather than asking “is it a good time to sell,” we encourage owners to ask themselves these five questions:
1. What Is My Facility Worth Today, and Am I Satisfied With That Number?
Get a real valuation — not a guess, not an online estimate. If the number makes you happy and meets your financial goals, the market is secondary. If the number disappoints you, explore what it would take to get it higher (and whether you have the time and capital to do so).
2. Is My Income at Risk?
Look forward 12–24 months. Is new competition coming? Are your rates sustainable or have you pushed too far? Is your occupancy vulnerable? If you believe your income is at or near its peak — or at risk of declining — selling now captures that value. If you see genuine upside (expansion, rate growth, occupancy improvement), it may be worth holding to realize it.
3. Do I Have the Energy and Desire to Keep Operating?
Self storage management is relatively light compared to other real estate — but it’s not zero. If you’re tired of dealing with tenants, maintenance, property taxes, and insurance, that’s a legitimate reason to sell. Burnout leads to deferred maintenance, which leads to declining value. Don’t hold a property you’re not willing to manage well.
4. What Will I Do With the Money?
This question trips up a lot of owners. You sell for $4M, pay taxes, and have $3M in your pocket. Now what? If you have a clear plan — a 1031 exchange into a different property, retirement funding, a new business, debt payoff — selling makes sense. If you’ll just park it in a bank account earning 4%, the math might favor holding the facility.
5. What’s My Tax Situation?
Capital gains, depreciation recapture, state income taxes — the tax bite on a self storage sale can be substantial. Before you decide to sell, talk to your CPA about the after-tax proceeds. And explore whether a 1031 exchange makes sense for your situation (it often does).
Our View: The 2026 Market Is Good — But It’s Not 2021
We’ll shoot straight with you. If you’re comparing today’s market to the absolute frenzy of 2021, you’ll be disappointed. That was an anomaly — a once-in-a-generation collision of near-zero interest rates, pandemic-driven demand, and institutional FOMO.
But compared to historical norms? The 2026 market is strong. Buyers are active. Capital is available. Cap rates are attractive. Transaction volume has recovered. Properties are selling at prices that would have seemed extraordinary five years ago.
The facilities that are selling well right now share these characteristics:
- Stabilized income with a clean, verifiable T-12
- Well-maintained property without major deferred maintenance
- In a market with positive demographics (population and income growth)
- Priced realistically based on current market conditions, not 2021 peaks
If that describes your facility, this is a strong selling environment.
If your facility is facing challenges — new competition, declining occupancy, deferred maintenance, or a weak market — the conversation is different. It might be better to invest in improvements first, or it might be better to sell now before conditions get harder. Those are judgment calls that depend on your specific situation, and they’re exactly the kind of conversations we have with owners every day.
The Cost of Waiting
One factor that owners often underestimate: the cost of waiting for a “better” market that may never come.
Every year you hold is a year of:
- Property tax increases
- Insurance premium increases
- Maintenance and capital expenditure
- Management time and effort
- Risk of market changes (new supply, economic downturn, regulatory changes)
If you’re waiting for cap rates to compress another 50 basis points, ask yourself: what’s the probability of that happening, and what are you giving up while you wait?
Sometimes the best time to sell is when the market is good — not when it’s perfect.
Not Sure Whether It’s Your Time to Sell?
Whether it’s time to sell or time to hold, we can help you think through it. We’ll look at your specific facility, your market, your financials, and your personal goals — and give you an honest recommendation.
No pressure to sell. No agenda other than helping you make the best decision.
[Let’s Talk About Your Situation →]