The record-setting days of the pandemic era might be over, but the nation’s self-storage market remains a strong one.

That’s the highlight from Cushman & Wakefield’s first-half 2025 Self Storage Market Report, a report that shows a sector adjusting to normalized transaction volumes, stable capitalization rates, and moderated rent growth after the record-setting activity of the pandemic era.

Total transaction volume reached $2.85 billion in the first half of 2025, less than 1% higher than the same period in 2023 and consistent with pre-pandemic trends. Between 2020 and 2022, self storage investment surged to nearly $50 billion, far exceeding the $35 billion transacted in the seven years prior.

“Investor interest in self storage remains strong, even as the market moves into a steadier cycle,” said Tim Garey, Managing Director and Practice Group Leader, Self Storage at Cushman & Wakefield. “Valuations have moderated, but long-term fundamentals and demand drivers continue to underpin confidence in the sector.”

Key findings from the report include:

• Valuations: After peaking at $174 per square foot in Q1 2023, valuations declined for six consecutive quarters to an average of $159 psf in Q2 2025, down 12 percent from peak levels.
• Capitalization Rates: Self storage cap rates averaged 5.8 percent over the past six quarters, with Class A assets ranging from 5.0–5.5 percent and Class B ranging from 5.5–6.5 percent.
• Occupancy: National occupancy has held steady at around 90 percent since 2023, with regional variations between 89 and 92 percent.
• Rents: Asking rents, which reached a peak of $134 psf in Q3 2022, have since ranged between $124 and $132 psf, averaging $127 psf. In Q2 2025, the Pacific and Northeast subregions posted the highest averages at $193 psf and $154 psf, respectively.
• Construction: Elevated costs, potential tariffs on materials, and tight debt liquidity have slowed development, with more projects placed on hold in Q2 2025.
• Investor Sentiment: In Cushman & Wakefield’s survey of industry leaders, 56 percent expect little to no change in cap rates over the next 12 months. While 39 percent cited the housing market as the top concern, nearly two-thirds of investors plan to be net buyers over the next year.

“While market conditions have normalized, the appetite for self-storage remains resilient,” added Garey. “Investors are increasingly targeting secondary markets and value-add opportunities, positioning the sector for steady activity into 2026.”