2026 Storage Forum Recap: Gradual Recovery Continues to Take Hold

Research evidence excerpt

2026 Storage Forum Recap: Gradual Recovery Continues to Take Hold

er and oversupplied Sun Belt markets, though some markets are Source: Jefferies

beginning to recover. The Northeast, Midwest, and select coastal metros (NYC, Miami, Chicago, DC/

Exhibit 3 - Most Respondents Believe Cap

Boston) are seeing normalized or above-normal growth, while Phoenix, Atlanta, Tampa, and broader Rates Will Remain Unchanged 12 Months

Florida remain pressured. Capital is following fundamentals, with buyer demand concentrated in the From Now

top-20 metros and supply-constrained submarkets, though underwriting has become increasingly 100% Cap Rates in June 2027:

71%granular as even “good” markets show pockets of oversupply. 80% 64%

60%

Supply Outlook Turning Constructive: The supply backdrop is inflecting in the industry’s favor, with 40% 27% 29%

starts down and development activity slowing, though the existing pipeline is taking longer to clear. 20% 9% 0%

Visibility into 2026–27 supports supply as a tailwind over the next ~12–18 months, particularly 0% Lower vs Today Same as Today Higher vs Today

as weaker merchant builders struggle to pencil new deals and delayed projects extend timelines. 2025 2026

While lease-up pressure persists near term, especially in Sun Belt markets, most participants see .Source: Jefferies

improving fundamentals as absorption catches up and new competition fades.

Capital Markets Led by Core Capital: Per JLL, capital markets have turned meaningfully more

constructive over the past ~60–90 days, with lower-cost core and core-plus equity re-engaging and

driving pricing and activity. Stabilized assets have seen bid-ask spreads largely close across top

markets, and cap rates are expected to hold near current levels. Notably, dry powder remains a key