MHN Asks: Is the Self Storage Sector Getting Back on Track?
Having organized $200 million-plus of private equity for Spartan Investment Group’s projects, Ryan Gibson is optimistic about the sector's prospects.
The self storage industry is currently recalibrating, adapting to diminished moving activity throughout the country. Last year was a year of adjustments, too, with softening fundamentals visible across key markers.
As of December, the national advertised street rate for non climate-controlled units decreased 2.3 percent year-over-year, while rates for similar-size climate-controlled units dropped even 3.4 percent, a recent Yardi Matrix report shows.
For 2025, experts remain cautiously optimistic about the industry’s performance as some occupancy levels stabilize and rent growth in select markets across the country improves.
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“Self storage remains one of the most resilient asset classes in commercial real estate,” said Ryan Gibson, president & CIO of Spartan Investment Group. “The reason is simple: Unlike other property types, demand for storage is driven by life events. Regardless of economic conditions, people continue to move, get divorced, downsize, relocate, grow their families and start businesses. When they do, they turn to storage.”
Spartan currently has more than $600 million worth of assets under management and its portfolio comprises some 30,000 units across 60 facilities. Recent investments include two self storage properties in Salem, Ore., totaling 164,752 rentable square feet. We asked Gibson to share details about Spartan’s direction in the current economic context and expand on self storage market trends that will be shaping the sector this year.
In your opinion, where do opportunities lie in the self storage sector today?
Gibson: While economic uncertainty dampened the deal volume in 2024, we’re starting to see that pattern shift as credit conditions ease and the housing market picks up. As interest rates drop, home transactions should increase, driving greater demand for storage as people relocate and renovate.
Additionally, the slowdown in new storage development over the last year could create major opportunities for developers and investors as the market heats up. Overall, I’m anticipating renewed momentum as capital flows back into the self storage sector.
Where do you see demand coming from? Which U.S. areas might get the spotlight?
Gibson: At a high level, I’m expecting to see demand pick up across the country as the housing market recovers. As home transactions and relocations increase, so too will the need for storage.
This pattern will be particularly pronounced in high-density urban areas. A growing number of Americans are opting to settle in cities where living spaces tend to be smaller. With less room to spare, urban apartment dwellers are turning to self storage to reclaim space in their homes, creating a sustained appetite for storage in metro areas, where square footage comes at a premium.
Spartan entered the South Carolina market with the purchase of this 543-unit facility in Beaufort. All images courtesy of Spartan Investment Group 
The firm also developed this 74,088-rentable-square-foot project in Port Wentworth, Ga., near Savannah. 
This self storage facility in Athens, Ga., is Spartan’s 19th property in the state. The company acquired the 600-unit asset in August 2024.
Tell us about how the sector’s evolution has been reflected in your firm’s activity.
Gibson: Early on in our trajectory, we recognized the strength of vertical integration and made the decision to structure our business model around it. A major milestone for our company was launching our construction and property management subsidiaries, Spartan Construction Management and FreeUp Storage. Over time, our focus on vertical integration has allowed us to take full control of every aspect of our business—from acquisitions and development to property and asset management—enabling us to operate and scale more effectively.
Technology has also played a central role in reshaping the industry. We’ve adopted solutions such as StoreEase, which allows customers to book units, access properties and interact with AI-driven support—even when we don’t have staff onsite. This level of flexibility and convenience was unheard of a decade ago.
Lastly, revenue management has become far more sophisticated. It’s not enough to open a facility and trust that demand will follow. We leverage data analytics to optimize factors like our pricing strategy and advertising spend in real time. The ability to monitor and adjust performance dynamically has been a game changer, allowing us to maximize profitability while improving the customer experience.
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And what’s in store for your company this year?
Gibson: We plan to acquire 25 existing facilities and develop 25 new ground-up projects. We closed on three properties in January and have four more in the pipeline.
Regionally, we’re targeting high-growth markets in the Southeast, Pacific Northwest, Northwest Arkansas and the Mountain West. Home to multiple Fortune 500 companies, including Walmart, Northwest Arkansas is experiencing rapid population growth and economic expansion. Meanwhile, the Mountain West continues to see significant migration fueled by its lifestyle and recreational appeal. Both regions have the market fundamentals for long-term growth, making them extremely attractive for self storage investment.
What’s your strategy when it comes to acquisitions?
Gibson: We primarily focus on acquiring and developing self storage facilities in secondary and tertiary markets. We analyze emerging trends such as shifts in the U.S. population to zero in on markets where the demand for storage outpaces supply. Before we commit to an offering, we run it through our rigorous due diligence checklist, which covers more than 700 points.
Once we acquire an asset, we rebrand it under our national FreeUp Storage banner, adjust rents to align with market rates and bring in our in-house construction team to modernize and upgrade facilities—all of which augment revenue.
Last but not least, what aspects will you be monitoring going forward to help you make informed business decisions?
Gibson: One area I’ll be watching closely is the housing market. Many Americans have delayed major projects and purchases as they wait for the economy to stabilize. In the coming months, we can expect more favorable borrowing conditions to re-energize the real estate market.
Similarly, there has been a significant push to bring workers back to the office. That could lead to a rising need for storage, as employees adjust their living situations and move closer to work.
I’ll also be keeping an eye on emerging applications of AI. This technology is evolving rapidly, and at Spartan, we’ve already identified innovative use cases in underwriting, due diligence, acquisitions and customer service. I’m looking forward to seeing how AI continues to unlock new efficiencies within the commercial real estate sector as the technology advances.
