Commercial real estate firm Newmark Knight Frank (NKF) has released a “2020 Summary Market Report” on the self-storage industry. The publication offers insight to the impact of the 10-year Treasuries interest and capitalization (cap) rates on the storage market, the performance of self-storage against other real estate sectors, rate information for self-storage real estate investment trusts, and other metrics. It’s produced by the firm’s Self Storage Group, which provides valuation and consulting services.
With the 10-year Treasuries at an all-time low, the spread of cap rates is at an all-time high, according to a report summary. The market impact “results in significant increases to equity dividends or suggests downward pressure on cap and yield rates in the near term.” In addition, with brokers reporting continued interest in the self-storage market, the “long-term, steady cash flow characteristics and performance in dynamic (even recessionary) economic conditions indicate market sentiment that self-storage is a safe haven or a hedge against market turbulence.”
The two-page summary can be downloaded for free from the NKF website. The full report is available by request.
NKF is a commercial real estate advisory firm that provides valuation and consulting services for the self-storage industry and other real estate sectors. Its global workforce includes 18,000 professionals operating out of 480 offices on six continents.