I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
- Do you want a low-maintenance but lucrative investment?
- Are you looking for steady companies to invest in?
- Do you want to get involved with one of the most stable markets?
Consider investing in self-storage real estate investment trusts (REITs). The top self-storage REIT in the U.S. reached a market cap of $50.5 billion in 2022, demonstrating the potential of this market.
We compiled this list of the best self-storage REITs by considering dividend ratio, stock price, level of risk and growth opportunities to choose the best company for yourself.
Read about the best storage unit REITs to invest in here, and start your investment journey today.
Top 7 Best Self-Storage REITs
- Public Storage REIT – Best self-storage REIT
- Global Self Storage, Inc. – Best self-storage REIT ETF
- SmartStop Self Storage REIT – Best self-managed REIT
- Extra Space Storage – Best storage space REIT
- CubeSmart – Best public storage REIT
- National Storage Affiliates – Best private storage REIT
- Life Storage, Inc. – Best self-storage facilities
Public Storage REIT (PSA)
Public storage is the largest operator, developer and owner of self-storage facilities. It is on the New York Stock Exchange (NYSE) and is a member of the S&P 500 and FT Global 500.
One of the company’s core values is sustainability.
- Best: Self-storage REIT
- Types of investments: Self-storage facilities, business storage, car and RV storage, boat storage, climate-controlled storage
- Markets: Commercial and personal self-storage
- Dividend yield: 2.75%
- Why we recommend it: We recommend Public Storage as one of the top self-storage REITs to invest in because it has been successfully offering its services for years.
It has a stable business model that continues to grow without scaling too rapidly.
Global Self Storage, Inc. (SELF)
This company is a self-managed and self-administered REIT. Global Self Storage focuses on high-end storage facilities, such as wine storage and climate-controlled units, meaning it charges higher rates and may have longer leases than more catchall storage facilities.
It is also one of the smaller storage companies, with only 13 facilities in the U.S.
- Best: Self-storage REIT ETF
- Types of investments: Personal self-storage, outdoor parking, climate-controlled storage, wine storage, business storage, ETFs
- Markets: Commercial and personal self-storage
- Dividend yield: 5.6%
- Why we recommend it: Global Self Storage, Inc. also serves a niche market of wine lovers, a wealthy demographic contributing significantly to the storage industry.
Over recent years, the company has maintained a high dividend yield and successful business model, making it a reliable investment.
SmartStop Self Storage REIT (STSFF)
SmartStop owns over 175 storage facilities in the U.S. and Canada. While the company is smaller than others on this list, it offers a high-quality service with state-of-the-art security, professional customer representatives, climate-controlled units and clean facilities.
- Best: Self-managed REIT
- Types of investments: Moving supplies, quality storage units, vehicle storage, business storage, student storage, commercial properties
- Markets: Moving, self-storage, commercial rentals
- Dividend yield: 7.68%
- Why we recommend it: Demand for self-storage spaces and public storage REITs is growing. However, the market has shifted slightly in recent years, where the need for high-quality units is now higher.
Some people want cheap and simple storage, while others need protected, climate-controlled units. SmartStop helps satisfy this market, as all its units offer these premium features.
Extra Space Storage (EXR)
Extra Space Storage is a self-administered and self-managed REIT that operates over 2,000 properties with about 1.5 million units. It is the second largest self-storage company in the US, so it has a successful business model and continues to grow.
It offers clean and safe storage facilities with climate control, security cameras and other premium features.
- Best: Storage space REIT
- Types of investments: Business storage, personal storage, medical equipment storage, boat storage, RV storage
- Markets: Storage and self-storage
- Dividend yield: 3.79%
- Why we recommend it: Like Public Storage, we recommend Extra Space Storage because it practices sustainability and focuses on long-term goals while satisfying its investors in the short term.
It has won awards in sustainability and fills an essential niche as a medical REIT.
CubeSmart is a self-administered and self-managed REIT with over 1,000 properties in the U.S. It aims to simplify storage organization and help people overcome logistical challenges.
It is the third-largest storage company in the U.S.. It offers more affordable and streamlined storage solutions, so it lacks some of the fancier equipment that more expensive storage options have.
- Best: Public storage REIT
- Types of investments: Household storage, moving storage, business storage, vehicle storage, climate-controlled storage
- Markets: Commercial and personal storage
- Dividend yield: 4.24%
- Why we recommend it: CubeSmart is one of the best self-storage REITs to invest in because it has consistent dividends and profits.
The business is growing steadily and scaling with stability and purpose.
National Storage Affiliates (NSA)
As a self-administered and self-managed REIT, National Storage Associates dedicates itself to having the highest quality self-storage units.
However, it also facilitates the more affordable sections of the storage market. It is highly transparent with investors and prides itself on taking corporate responsibility seriously.
- Best: Private storage REIT
- Types of investments: Storage facilities, PROs, captive pipeline acquisitions, third-party acquisitions, strategic joint ventures
- Markets: Commercial and personal storage
- Dividend yield: 5.6%
- Why we recommend it: National Storage Affiliates can be a wise investment because it operates as a private storage REIT, meaning investors can get higher ROI than public companies.
It also has a family of storage companies covering more market niches, such as simple, affordable, or high-quality, controlled storage.
Life Storage, Inc. (LSI)
Life Storage has over 1,000 storage units across the U.S. It strives to use the most modern and innovative technologies to make storage easier and safer for businesses and individuals.
This storage company has a catchall approach, as it offers a wide range of storage types to accommodate all niches in the market.
It uses an executive leadership succession model, keeping the business strategy clear and consistent.
- Best: Self-storage facilities
- Types of investments: personal storage, commercial storage, climate-controlled storage, wine storage, vehicle storage
- Markets: Commercial and residential storage
- Why we recommend it: We recommend Life Storage because it offers decent dividend payouts and a stable business model.
The company is also growing quickly, providing a happy medium of affordable and quality or specialized storage.
What Are Self-Storage REITs?
Self-storage REITs are REITs that manage warehouse facilities where customers can rent out storage space. The REITs administer and operate the storage facilities, which are often mini warehouses.
There is a long list of reasons someone would want to rent a self-storage unit. The top uses for self-storage units are listed below:
- Storing valuable items
- Business Storage
- Storing vehicles
- Relationship changes
- Frequent travelers
- Archives or inventory
Benefits of Self-storage REITs
Below are the top reasons to invest in a self-storage facility REIT:
Rising demand for storage space – As online shopping continues to reign and rent prices increase, people find they have too many items in their homes.
However, donating or trashing them is not logical. An excellent solution is a self-storage space in a secure facility.
The COVID-19 pandemic also increased the demand for self-storage.
Low-cost real estate investments – When you invest in real estate, such as apartment buildings or residential homes, the initial investment is often more expensive, and the properties need more attention.
Self-storage REITs are low-cost real estate investments.
History of great returns – Self-storage REITs have a history of significant returns on investment. The demand for storage space, the low investment cost and the lack of maintenance expenses mean investors will get more money back sooner.
Inexpensive to maintain – Aside from security and safety, self-storage properties need little maintenance or additions. There are no major plumbing systems to worry about, and many don’t even have HVAC systems.
Potential for dividends – Because the self-storage real estate industry is booming and shows no signs of slowing down, you will likely get dividends from the property owners.
They send money or stocks to their shareholders suggesting the business is doing well.
Risks of Investing in Self-storage REITs
Below are some risks to be aware of when investing in self-storage businesses:
Economic uncertainties – With any investment, there is the looming risk of economic problems. Recessions and hard financial times in the country affect almost all investments.
Oversupply – Demand for storage is growing, but it’s hard to predict when and if this demand will end. Many new self-storage facilities are popping up to meet this demand.
However, the supply may exceed demand.
Short-term lease structure – Unlike residential and commercial properties that usually have a minimum lease of a year, self-storage units have short-term contracts.
Interest rate and financing risks – Interest rates often impact REIT stock prices and make it more difficult for these companies to pay off debts or take new loans, affecting their ability to finance development projects and acquisitions.
How to Invest in Self-Storage REITs
Below is a step-by-step process of how you can invest in self-storage REITs from a brokerage.
- Understand the Self-Storage Industry: As discussed above, the self-storage industry is booming and in demand.
- Understand REITs: Before investing in one, you should understand how self-storage REITs operate.
- Research the Benefits and Risks: You can find a quick guide to the pros and cons earlier in this article.
- Research Tax Implications: Most dividends are taxed, and you may also have to pay a surtax on your total returns. Research the tax implications before investing.
- Open a Brokerage Account: Open a brokerage account with an investment firm or brokerage before investing.
- Buy Your First REIT: Choose what REIT you like on the NASDAQ and invest.
Self-storage REITs are one of the best ways to get ROI and dividends with little effort. Compared to the stock market and other REIT and property investments, storage investments are low-maintenance and have low volatility.
If you want a direct investment that is almost sure to give you a high yield, don’t wait to invest in one of these top self-storage REITs.
Storage REIT FAQ’s
Below are answers to some common questions people have about self-storage REITs.
Are self-storage REITs a good investment?
Yes! This market is growing and shows no signs of stopping, so it’s a great industry to invest in.
What is the largest self-storage company?
Public Storage is the largest self-storage company in the U.S. and Canada.
Should you invest in your own storage units?
It can be lucrative if you have the capital to own and operate a storage facility. Investing in a public storage REIT is much easier, however.