What is the cap rate for self-storage REITs?

The cap rate -- the annual net operating income (NOI) divided by the current market value, expressed as a percentage -- for self-storage REITs in 2026 ranged from 5.0% to 7.5%, depending on quality, facility age, and occupancy.

Is National Storage REIT a good investment?

National Storage REIT, Australia's largest self-storage operator, agreed to a takeover offer from Brookfield Asset Management (NYSE: BAM) and GIC in late 2025, which closed in May 2026. As a result, investors can't buy shares of National Storage REIT anymore.

Who is the biggest self-storage company?

Extra Space Storage is the largest self-storage company in the U.S., with a 14.2% market share by square footage as of mid-2026. However, Public Storage is the world's largest owner of self-storage properties, in part due to its 35% interest in the European self-storage company Shurgaard Self Storage. Public Storage is also buying the fifth-largest U.S. self-storage REIT, National Storage Affiliates, in a $10.5 billion deal, and Public Storage Canada, the third-largest self-storage player in Canada, for $1.2 billion.

Is self-storage REIT still a good investment?

Self-storage REITs are still good investments. They have historically delivered above-average total returns, driven by their low costs and rising demand for space. Those two catalysts position the sector to continue growing shareholder value.

Is the self-storage market saturated?

The U.S. self-storage market has become increasingly saturated in recent years. Occupancy and rental rates peaked in 2022 and have been declining since that time due to a surge in new self-storage supply following the COVID-19 pandemic. On a more positive note, the rate of new supply is declining (from 5% in 2019 to 2% in 2026), while the population continues to demand more space. As a result, the market is absorbing this excess storage space.

Can self-storage REITs provide dividends?

Yes, self-storage REITs can provide dividends. All REITs must distribute at least 90% of their taxable net income to shareholders via dividends. As a result, a self-storage REIT will provide dividends as long as it has taxable net income.

How do self-storage REITs perform during economic downturns?

Self-storage REITs tend to underperform during economic downturns. Recessions typically dampen demand for self-storage space and affect tenants' ability to pay rent. As a result, occupancy levels typically fall while monthly rental rates can decline, depending on the severity of the recession.

3 Best Self-Storage REITs for 2026 and How to Invest

A beginner's guide to investing in self-storage REITs.

By Matthew DiLallo – Updated Jul 8, 2026 at 4:46 PM EST | Fact-checked by Frank Bass

Key Points

Self-storage REITs can benefit from frequent rent adjustments due to their month-to-month leases.
Top self-storage REITs include Public Storage, Extra Space Storage, and CubeSmart.
Investing in self-storage REITs can offer dividends and growth.

Self-storage real estate investment trusts (REITs) are companies that own, operate, and manage mini-warehouses. These properties enable businesses and households to securely store items in individual storage units. Some self-storage operators also rent parking spaces for boats, RVs, and other vehicles.

Most self-storage units rent on a month-to-month basis. That differs from the lease structure of many other REITs, which typically own properties that lease space for a year or more. The shorter-term lease structure enables self-storage REITs to raise rents more frequently to market rates. However, a drawback is that they might have to reduce rents during a down market.

In addition to generating rental income, self-storage REITs have several other potential revenue sources, depending on their business model. These can include tenant reinsurance income, late fees, management fees, and the sale of moving materials (boxes, packaging, tape, etc.).

Here's a closer look at the self-storage REIT sector, as well as some leading self-storage REITs investors should consider.

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Exterior of several self-storage buildings. — Image source: Getty Images.

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Three top self-storage REITs for 2026

There were only six publicly traded self-storage REITs in mid-2026 due to sector consolidation. Here are the three top ones:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield	Industry
Public Storage (NYSE:PSA)	$56.5 billion	3.73%	Specialized REITs
Extra Space Storage (NYSE:EXR)	$30.7 billion	4.46%	Specialized REITs
CubeSmart (NYSE:CUBE)	$9.2 billion	5.20%	Specialized REITs

Data as of Jul 14, 2026. Showing 3 of 3 total entries.

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1. Public Storage

NYSE: PSA

Public Storage

Today's Change

(0.25%) $0.81

Current Price

$322.67

Key Data Points

Market Cap

$57B

Day's Range

$322.63 - $324.12

52wk Range

$256.54 - $331.79

Volume

4.4K

Avg Vol

961K

Gross Margin

48.97%

Dividend Yield

3.73%

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Public Storage (PSA +0.41%) is the largest self-storage REIT by market cap. In mid-2026, it had nearly 3,550 owned or operated properties with more than 259 million square feet of net rentable space across 40 states. In addition, it also owns a 35% interest in European self-storage REIT Shurgard Self Storage, which owns 333 self-storage properties in seven Western European countries with 19 million net rentable square feet.

Public Storage is about to get even bigger. It agreed to buy fellow self-storage REIT National Storage Affiliates (NSA +0.56%) in early 2026 in a $10.5 billion deal. The merger will add 1,000 more properties to its portfolio, further enhancing its scale. Additionally, the company agreed to acquire Public Storage Canada for $1.2 billion, an independent company built by its founder, Wayne Hughes. The deal marks its strategic entry into Canada. Public Storage Canada is the third-largest self-storage platform in Canada with 68 properties totaling 5.3 million square feet.

Acquisitions aren't its only growth driver. Public Storage also has an in-house property development platform, which differentiates it from other self-storage REITs. As of mid-2026, Public Storage had $618.4 million of development and expansion projects underway to add 3.5 million net rentable square feet to its portfolio over the next 18 to 24 months. The company also has growing third-party management and lending platforms.

Public Storage's growth drivers have supported its steadily rising dividend (9.3% compound annual growth rate since 1996).

2. Extra Space Storage

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NYSE: EXR

Extra Space Storage

Today's Change

(0.95%) $1.36

Current Price

$145.32

Key Data Points

Market Cap

$31B

Day's Range

$144.14 - $146.19

52wk Range

$125.71 - $155.19

Volume

75.4

Avg Vol

1.2M

Gross Margin

34.35%

Dividend Yield

4.46%

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Extra Space Storage (EXR +0.15%) is the largest player in the U.S. self-storage sector. In mid-2026, it had over 4,340 properties in 42 states, with more than 335.6 million square feet of rentable space. It controlled 14.2% of the U.S. self-storage market, the largest share in the sector (bigger than Public Storage's 11.1%, which will increase to 14.1% upon closing its acquisition of National Storage Affiliates).

Extra Space Storage's third-party management platform sets it apart from other self-storage REITs. While most REIT rivals also manage third-party properties, Extra Space Storage was an early leader in this business model. It currently manages more properties than any of its competitors (1,856 in early 2026, compared to 813 for CubeSmart and 362 for Public Storage).

This strategy has several benefits. It generates steady management fee income (over $220 million annually) and requires little up-front investment. Meanwhile, it provides the company with a steady stream of acquisition opportunities (more than $2 billion since 2020). Extra Space Storage can purchase a property it knows very well when the owner sells, reducing risk.

Extra Space's fast-growing third-party management platform has enabled it to deliver sector-leading dividend growth. Over the last 20 years, Extra Space has grown its payout at a 10.3% compound annual rate, faster than Public Storage (7.8%) and CubeSmart (3%).

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3. CubeSmart

NYSE: CUBE

CubeSmart

Today's Change

(0.57%) $0.23

Current Price

$40.84

Key Data Points

Market Cap

$9.2B

Day's Range

$40.84 - $40.84

52wk Range

$35.09 - $42.64

Volume

5.8K

Avg Vol

2.1M

Gross Margin

45.32%

Dividend Yield

5.20%

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CubeSmart (CUBE +1.04%) ranks a distant third in the highly fragmented U.S. self-storage market with a 4.9% share. The company owned or managed over 1,500 properties with 48.5 million square feet across 41 states as of mid-2026.

The REIT has several growth drivers. It will acquire wholly-owned properties, invest alongside joint venture partners, partner with local developers, and grow its third-party management platform.

CubeSmart's multi-pronged growth strategy has enabled it to steadily grow its dividend. The REIT has increased its dividend for 16 straight years, the longest active streak in the self-storage sector. CubeSmart has hiked its dividend by 203% over the last 10 years.

How to invest in self-storage REITs

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker name into the search bar to bring up the REIT's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this REIT.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in self-storage REITs

Self-storage REITs have several attractive investment qualities, including:

Steadily rising demand: Demand drivers include relocation, decluttering, disasters, changing life circumstances, and business purposes. These factors tend to keep occupancy levels high while steadily raising rental rates.
Low break-even levels: Self-storage properties are among the lowest-cost real estate investments, as they're typically inexpensive to build and operate. As a result, they tend to have relatively low occupancy break-even rates. These factors enable self-storage investments to generate high margins and returns on investment.
Strong historical returns: Self-storage REITs have historically been among the best-performing REITs.

While self-storage REITs have been excellent long-term investments, they're not without risk. Risks include:

Oversupply risk: Because self-storage facilities are cheap to build and operate, there are low barriers to entry. Developers can quickly build new capacity, increasing competition for customers in a market and weighing on occupancy levels and rental rates at existing facilities.
Economic risk: Due to the short-term nature of self-storage leases, the sector has more exposure to an economic downturn. If the economy takes a hit, fewer people will move. Businesses might also cut expenses, which could impact occupancy and rental rates.
Financing risk: As interest rates rise, borrowing money becomes more expensive. If a REIT has significant floating-rate debt or near-term maturities, rising rates can increase its interest expense. Higher interest rates can also affect a REIT's ability to finance acquisitions and development projects.
Interest rate risk: Rising interest rates tend to weigh on REIT stock prices. That's because it makes lower-risk alternatives, such as bonds, more attractive investments, since their yields rise. As a result, REIT stock prices tend to fall, pushing up their dividend yields to compensate investors for their higher risk profiles.

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Methodology: How these stocks were chosen

Only a half-dozen REITs focus specifically on self-storage. I evaluated this group and chose the best ones based on:

Size: Larger-scale REITs benefit from economies of scale.
Development strategy: REITs that invest in development projects (either through an in-house development arm or by funding third-party developers) can earn higher returns compared to those focused solely on acquisitions.
Portfolio mix: REITs with a mix of wholly owned properties, joint ventures, managed properties, and development investments have more ways to grow shareholder value.
Geography: REITs focused on high-growth markets should deliver faster net operating income growth.

Should you invest in self-storage REITs?

Self-storage REITs benefit from a combination of lower costs, high demand, and short-term lease structures, which have enabled the sector to steadily increase income. That has helped the industry generate above-average total returns over the years. The ability to earn high returns makes self-storage REITs attractive options for real estate investors.

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FAQ

Investing in self-storage REITs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Public Storage. The Motley Fool has positions in and recommends Vanguard Real Estate ETF. The Motley Fool recommends Extra Space Storage. The Motley Fool has a disclosure policy.

3 Best Self-Storage REITs for 2026 and How to Invest

A beginner's guide to investing in self-storage REITs.

Key Points

Three top self-storage REITs for 2026

1. Public Storage

NYSE: PSA

Key Data Points

2. Extra Space Storage

NYSE: EXR

Key Data Points

3. CubeSmart

NYSE: CUBE

Key Data Points

How to invest in self-storage REITs

Benefits and risks of investing in self-storage REITs

Methodology: How these stocks were chosen

Should you invest in self-storage REITs?

Related investing topics

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FAQ

Investing in self-storage REITs: FAQ

What is the cap rate for self-storage REITs?

What is the cap rate for self-storage REITs?

Is National Storage REIT a good investment?

Is National Storage REIT a good investment?

Who is the biggest self-storage company?

Who is the biggest self-storage company?

Is self-storage REIT still a good investment?

Is self-storage REIT still a good investment?

Is the self-storage market saturated?

Is the self-storage market saturated?

Can self-storage REITs provide dividends?

Can self-storage REITs provide dividends?

How do self-storage REITs perform during economic downturns?

How do self-storage REITs perform during economic downturns?

About the Author

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Premium Investing Services

Three top self-storage REITs for 2026

NYSE: PSA

Key Data Points

2. Extra Space Storage

NYSE: EXR

Key Data Points

How to invest in self-storage REITs

Benefits and risks of investing in self-storage REITs

Methodology: How these stocks were chosen

Should you invest in self-storage REITs?

Best Hospitality REITs for 2026 and How to Invest

Best Stocks to Buy Now: Our Buy-and-Hold Picks for July 2026

5 Best Healthcare REIT Stocks for 2026 and How to Invest

Best REIT ETFs for 2026 and How to Invest

Investing in self-storage REITs: FAQ

What is the cap rate for self-storage REITs?

What is the cap rate for self-storage REITs?

Is National Storage REIT a good investment?

Is National Storage REIT a good investment?

Who is the biggest self-storage company?

Who is the biggest self-storage company?

Is self-storage REIT still a good investment?

Is self-storage REIT still a good investment?

Is the self-storage market saturated?

Is the self-storage market saturated?

Can self-storage REITs provide dividends?

Can self-storage REITs provide dividends?

How do self-storage REITs perform during economic downturns?

How do self-storage REITs perform during economic downturns?

NYSE: CUBE

Key Data Points