The 2016 outlook for self-storage facilities remains strong. Fueled by positive economic and household growth and consumption, demand for self storage facilities is on the rise.

In addition to increased demand, well-funded private and public capital is further increasing sales activity. As more and more investors acquire self-storage facilities, steady pressure has been placed on pricing cap rates. Expectations surrounding Federal Reserve rate hikes may cloud investment activity outlook but the market remains good for continued sales activity. If interest rates do go up, we all know that cap rates will go up, too. If you have ever considered selling now may just be the best time.

The self storage industry has also benefited from limited new construction, but leading indicators point to more development in the coming year.

Additional factors to consider as you weigh your options are as follows:

• Occupancy and rent levels are both expected to rise in the coming year resulting in more transient residents who need temporary storage
• Tighter living quarters cannot accommodate all of the belongings of residents today
• The average rental rate is projected to reach a five-year high in 2016 for both climate controlled and non-climate controlled space
• Once construction of new Self storage facilities begins to increase, national vacancy rates may begin to face challenges
• Overall the self storage market is strong

  It all comes down to knowing your options and I hope this post provides useful insights to assist you in making the best decision. I look forward to assisting you in meeting your goals.