\n
![\"WeWork](\"https:\/\/mms.businesswire.com\/media\/20210809005488\/en\/669112\/5\/CW_Logo_Color_%28002%29.jpg\"){kind=logo}
<\/p>\n
\n<\/p>\n
Exploring Alternative Investment Opportunities<\/b><\/i><\/span><\/span><\/span><\/p>\n In recent years, alternative sectors have grown\u202finto a significant share of Commercial Real Estate (CRE) investment, totaling $289 billion in transaction volume from 2020 to 2023\u2014a 79% increase. During that time period, 39% of capital raised has included alternatives as target sectors.<\/span><\/span><\/span><\/p>\n Self storage is driven by a variety of factors including migration (over short and long distances) home downsizing and crossing other life thresholds (college graduation, family formation, marriage and death). Exogenous events, such as the COVID-19 pandemic, can also spur substantial growth in the sector as migration was kickstarted to record levels temporarily and self storage became a necessity.<\/span><\/span><\/span><\/p>\n Transaction volume subsided in the first half of 2023 with the trailing 12-month volume down 57% year-over-year (YOY). While this decline is significant, self storage remains a top performer, with volume remaining above the 12-month levels leading up to the pandemic. Despite the rising cost of debt, capitalization rates for self storage remain relatively stable, averaging 5.1% in the second quarter of 2023, only up 10 bps from all-time lows.<\/span><\/span><\/span><\/p>\n Self storage continues to show resiliency as valuations remain intact, averaging $165 per square foot. Though down slightly from the 2022 peak, the average price per square foot marked a 2.5% increase YOY. As the self storage sector continues to mature as an asset class, while maintaining low operations costs, interest from institutional investors will increase.<\/span><\/span><\/span><\/p>\n Despite an overall economic slowdown affecting a wide variety of sectors, alternative assets maintain\u202fstrong performance indicators, including national-level occupancies over 90%. Compared to traditional CRE asset classes, alternative sectors have shown proven resilience during the last three downturns and stand out as compelling arenas\u202fin the ever-evolving landscape of commercial real estate.\u202f<\/span><\/span><\/span><\/p>\n The full report can be downloaded here<\/strong><\/span><\/a>. Let me know if you have any questions or are interested in speaking with our researchers about the report. Thanks!<\/span><\/span><\/span><\/p>\n Contact<\/b><\/u><\/i>:<\/span><\/span><\/span><\/p>\n Gretchen Shoenberger
\n<\/span><\/span><\/span>PR Specialist, Americas
\n<\/span><\/span><\/span>Global Communications
\n<\/span><\/span><\/span>Direct: +1 212 841 7548
\n<\/span><\/span><\/span>gretchen.shoenberger@cushwake.com<\/a><\/span><\/span><\/span><\/strong><\/span><\/p>\n