Where are self storage cap rates in 2026?

The 2026 valuation environment is more rational than the pandemic peak.

The 2026 Self Storage Almanac says Class-A institutional-quality assets in major markets are typically trading in the 5.0 percent to 5.75 percent cap-rate range. Secondary markets generally add a 75- to 100-basis-point premium, and tertiary markets add another 100 to 150 basis points. For owners, that means location, quality, rent growth, occupancy, and supply risk all influence exit value. For investors, it means a higher cap rate is not automatically a better deal. Sometimes it is compensation for weaker location, weaker management, or supply pressure. In our experience, we have found 7% cap rates to be the middle of the road in 2026. Buyers are interested in existing financials and less on pro forma. Banks are relying more on debt service coverage ratios or yield. There are still instances where significant value add allows buyers and banks to come in at lower cap rates, but conservative purchasing is still prevalent.