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Development Outlook in 2024

This post is from Box Pro's "3 Things" newsletter.

A brief newsletter from Box Pro in which we share 3 things in or about the world of self-storage and all the images are AI-generated.



1. Development outlook for 2024

My latest article in Inside Self Storage is somewhat of a market outlook for self storage development in 2024. In summary, it all comes down to interest rates. Deals that penciled over the previous 5-10 years aren't penciling now because of rates. This isn't a bad thing though—there are still plenty of deals that make sense. It just means an added level of scrutiny is necessary when underwriting deals.


2. Are rates coming back down?

A couple weeks ago I attended IMN's Winter Forum on Real Estate Opportunity & Private Fund Investing in Laguna Beach and all the talk, as you can imagine, was about interest rates. While some panelists matched the sentiment of expecting rates to be cut this year, many were not. For one, it is an election year, and historically, interest rates don't move much, if at all, during election years. Secondly, one panelist pointed out that after Jay Powell's announcement (which only hinted at rate cuts), the market boomed, potentially sending a signal to the Fed that there's too much heat in the market and that cutting rates will send us right back into inflationary times.


3. What is normal?

Interest rates feel high right now, because they are—compared to the last 15 years. But looking at rates over the past 30 years, interest rates today are very average. No one has a crystal ball, but if you're waiting for interest rates to drop in order to jump into the market, you may be waiting for a long time. I'd suggest finding a deal that works with the current interest rates today. They are out there.


If you have any comments/questions or need a feasibility/market study, message us here, or call/text me at 801-839-5844.

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