If you’re an investor looking for steady cash flow without the constant repairs, evictions, or tenant drama of multifamily ownership, self-storage—and its close cousins, boat and RV storage—deserve your attention.
At North Star Brokerage & Advisory, we specialize in Outdoor Hospitality and Storage assets across Texas, and we’ve seen firsthand how this sector continues to outperform in both good and challenging markets. Using Polaris, our proprietary data platform that tracks every mini storage and boat & RV storage property in Texas, we help our clients identify the best opportunities, make smarter decisions, and gain an informational edge in a competitive marketplace.
The Steady Rise of Storage
While much of the investment world has focused on multifamily development, self-storage has been quietly growing into one of the most durable commercial real estate asset classes. Over the past decade, the U.S. storage market has expanded from about 1.4 billion to nearly 2 billion rentable square feet, driven by population growth across the Sunbelt and the increasing demand for space as apartment units continue to shrink.
Cities like Austin, Dallas, Houston, Phoenix, and Tampa have seen a wave of new storage facilities built alongside residential developments. As urban footprints tighten and average apartment sizes decline, storage demand has surged. In Houston alone, units built since 2015 are on average 44 square feet smaller, while more than 5 million square feet of new storage have been added locally.
Simply put: when people have less room to live, they need more room to store.
Why Investors Are Turning to Storage
Even after the post-pandemic surge, when vacancy rates hit historic lows and rental rates soared 40% in some markets, self-storage has proven its resilience. As of 2025, the market has normalized, but investor appetite remains strong—with transaction volume up more than 35% year-over-year according to CRE Daily.
Cap rates today typically range between 5.5% and 6.5%, depending on location and asset quality. Despite higher interest rates and construction costs, storage continues to attract capital because it offers what few other asset classes can:
- Diversified Demand: From homeowners decluttering to businesses storing inventory, storage tenants represent a wide and steady customer base.
- Low Overhead: Maintenance is minimal, turnover is quick, and expenses are predictable.
- Pricing Flexibility: Month-to-month leases allow owners to adjust rates quickly to meet market demand.
- Fewer Headaches: Storage operators rarely face the tenant disputes, city inspections, or repair obligations that plague residential landlords.
Room to Grow in Texas and Beyond
The Sunbelt region, particularly Texas, remains a powerhouse for new storage development. Atlanta, Phoenix, Tampa, Houston, and Dallas are consistently among the nation’s leaders in rentable square footage added. Yet even with this growth, the supply-demand balance remains healthy due to rising population and limited new construction pipelines caused by elevated costs and tighter financing conditions.
For investors, that means opportunity—especially in secondary and tertiary Texas markets where competition is lower, demand is stable, and cap rates remain attractive.
At North Star, our team uses Polaris to monitor market dynamics across every corner of the state. Polaris tracks active and historical sales, ownership data, market comps, and development pipelines—giving our clients insight into where the next great opportunity will emerge before it hits the open market.
How to Participate
Investors can approach the self-storage sector in two main ways:
- Passive Ownership: Through public REITs like Public Storage, CubeSmart, or Extra Space Storage.
- Direct Ownership: By acquiring or developing a facility—whether traditional mini-storage or specialized boat & RV storage.
Financing options range from SBA and conventional loans to CMBS structures, depending on deal size and investor strategy.
At North Star, we work with both new and seasoned investors to evaluate opportunities, underwrite performance, and identify the markets with the best long-term fundamentals.
The Bottom Line
Self-storage may not have the glamour of multifamily towers or retail plazas—but it delivers what investors value most: stability, flexibility, and consistent returns.
And as older mom-and-pop owners transition out of the market, new opportunities continue to emerge for well-capitalized investors who understand the fundamentals and move decisively.
At North Star Brokerage & Advisory, we combine market expertise with the power of Polaris, our in-house data intelligence platform, to help our clients buy, sell, and build storage assets with confidence.
Whether you’re looking to expand your storage portfolio, enter the sector for the first time, or evaluate the market potential of your existing facility, our team can help you navigate the landscape and uncover the opportunities others miss.
Texas’ leading brokerage for RV Parks, Mobile Home Parks, and Storage Assets.
Powered by Polaris — our proprietary system tracking every storage property in Texas.
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