After a prolonged slowdown, the self-storage sector is beginning to regain momentum. Demand is ticking back up alongside a modest recovery in housing activity, while new construction has sharply declined, easing competitive pressure. But this is not a return to the easy growth of the pandemic years. Performance varies widely by market, unit type, and operator — and the margin for error has narrowed.
For developers and investors, the opportunity lies in that imbalance. As some operators struggle to regain occupancy or rely on discounting, others are seeing early gains by tightening operations, refining pricing, and being more selective about where and how they build. Wayde Elliott, founder of StoreIt, is among those navigating this shift, offering a window into what it now takes to compete in a recovering — but far less forgiving — self-storage market.
While macro indicators point to recovery, performance on the ground tells a more fragmented story. Occupancy gains are not consistent across assets — or even within them — with demand concentrating in specific unit types and price points.
Wayde Elliott, founder of StoreIt, is seeing that divergence play out across his portfolio. At one facility, smaller units and covered parking are fully leased, while other units require discounting to maintain occupancy. The variation isn’t just regional; it’s granular, shaped by unit mix, local competition, and pricing strategy.
For operators, that unevenness complicates what might otherwise look like a straightforward rebound. Demand may be returning, but it is not lifting all assets equally — making real-time visibility into performance, and the ability to adjust quickly, increasingly critical.
The pullback in new development is beginning to reshape the competitive landscape, creating openings for operators positioned to move. With fewer projects breaking ground, existing and near-term facilities face less pressure during lease-up — a shift that can improve absorption timelines and stabilize pricing.
But that advantage is not evenly distributed. The sites most likely to benefit are not necessarily the obvious ones. As Elliott puts it, “These are properties people don’t know what to do with. We go in and get creative.” Rather than pursuing standard retail or office conversions, his team has focused on more complex assets — from industrial buildings to specialized facilities — where competition is limited, and repositioning can unlock value.
That approach reflects a broader reality in the current cycle: reduced supply may create opportunity, but capturing it depends on where — and how — operators deploy capital. In a market no longer defined by rapid, across-the-board expansion, the ability to identify overlooked assets and execute on them has become a key differentiator.
As market conditions grow more complex, performance is increasingly determined by how well operators manage what they already have. Pricing, occupancy, and customer acquisition are no longer functions of demand alone, but of how effectively teams can respond to shifting conditions in real time.
For some, that has meant adopting tools and practices once reserved for larger players. Elliott points to the use of institutional-grade revenue management systems to continuously adjust pricing, as well as a growing reliance on artificial intelligence. “We spent an hour yesterday running things through AI,” he says. “You have a half-million-dollar advisor at your fingertips for $20 a month.” These tools allow smaller operators to model scenarios, refine marketing, and make faster, more informed decisions across their portfolios.
But discipline extends beyond technology. StoreIt’s internal processes — from hiring to performance management — are structured around consistency and accountability. “We hire and fire by those core values,” Elliott says, describing an approach designed to maintain service quality and operational standards across locations.
In a more selective recovery, these systems and habits are becoming a competitive edge. Operators who can execute with precision — adjusting pricing, maintaining service quality, and making data-informed decisions — are better positioned to capture demand as it returns, even when conditions remain uneven.
Investor interest in self-storage has not disappeared with the downturn — but it has become more selective. Capital is still flowing into the sector, particularly from family offices and high-net-worth individuals, but expectations around underwriting, execution, and risk management have tightened.
Elliott has seen that dynamic firsthand. StoreIt recently syndicated two deals, raising $6 million from investors, with an additional $2 million co-invested. “In conversations with those investors, they’re very excited and asking if we have other deals,” he says. But that appetite is tied to a clear pipeline and demonstrated performance, not speculation.
The shift reflects a broader recalibration. Self-storage may still be viewed as a resilient asset class, but in a more uncertain environment, investors are prioritizing operators who can show disciplined site selection, strong operational systems, and the ability to navigate uneven market conditions.
Capital, in other words, is available — but it is no longer chasing the sector broadly. It is backing those who can prove they are prepared.
About the Expert: Wayde Elliott is the founder and chief visionary officer of StoreIt, a self-storage company focused on ground-up development and complex property conversions. His experience spans site selection, development, and operations, offering a practical view of how operators are navigating a more competitive and uneven market.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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