KBRA releases research providing an overview of the self-storage sector, which may be at an inflection point.

Self-storage has historically been one of the best-performing commercial mortgage-backed securities (CMBS) property types by both cumulative loan defaults and losses.¹ However, over the last two years, the sector’s fundamentals have faced some headwinds from moderating demand, driven by stagnant home sales and elevated supply. This came on the heels of a very robust, pandemic-era spike in demand during 2020-22, stemming from remote work, relocations, and increased housing activity.

In 2025, there are indications the tide may be turning, or at least stabilizing, for rents and occupancies as supply is absorbed following the decline in new construction due to higher borrowing and construction costs. While the sector may be in a transition phase correcting some of its earlier strong gains, it remains a favored commercial real estate debt asset class given its strong demand attributes.

Key Takeaways

• Despite the softness in self-storage fundamentals over recent years, the CMBS self-storage loan delinquency rate, at 0.1% as of September 2025, remains well below the overall CMBS delinquency rate of 6.6%.
• Population growth, household formation, and demographic trends—especially aging baby boomers and mobile millennials—continue to shape long-term storage needs.
• Stagnant existing home sales have curbed near-term demand, but lower interest rates may revive housing activity and related storage use.
• REIS forecasts that for full-year 2025, completions will continue to decline while absorption and vacancy rates improve

Click here to view the report.

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About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1011777

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