Self Storage still worth it as an investment?

[Ben Patel]

A few years ago, self-storage was a hot real estate class. You'd be lucky if you found a self-storage at 6 / 7 caps a year ago or so, and now I'm noticing self-storage in the market for 7 / 8 caps. 

What's happening to the self-storage industry?

[Scott Meyers]

Hey Ben!  

As Cap Rates go down, prices go up.  As Cap Rates go up, prices go down.  That's why Sellers want low Cap Rates and Buyers want high Cap Rates.  And of course, Cap Rates depend mainly on the Class of the Facility (A, B, C, or F).  

Yes, Self Storage is a very hot asset class right now, with much money & attention turned towards it, so much that Cap Rates are being compressed.

I hope this helps.

Scott