The Self Storage Industry REITs continue to show great returns during the 1st Quarter 2015. The group, comprised of Public Storage, ExtraSpace, CubeSmart, and Sovran (Uncle Bobs) posted a combined year-to-date share price gain of 7.29%.
We believe the future of low interest rates continues to fuel the optimistic investor attitudes towards the sector, combined with low inventory of available storage units (due to new development of properties over the past years because of the economic recession).
Traders Continue to Feel Interest Rates will Be Low
It appears that Traders are expecting the Federal Reserve to raise interest rates later than sooner according to a recent report from BloombergBusiness. The fact is the Self Storage Industry is very interest rate sensitive. As long as rates continue to be low, consumers will have more purchasing power – to buy more stuff – and will need a place to put it. Additionally, low interest rates allow Self Storage Investors to acquire or develop properties at favorable interest rates. The results of which cause prices of land and Building Sales to rise.
Perhaps its time you consider investing in the Self Storage Industry?
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