How Private Equity Is Rolling Up Self-Storage Facilities

Episode notes

Self-storage has become one of the most aggressively consolidated real estate sectors in America. In this episode, Lucas and Luna dive into how firms like Public Storage and Extra Space have been buying up mom-and-pop facilities, the economics behind a 93 percent operating margin, and why the roll-up is accelerating even as interest rates remain elevated. They discuss the 2023 merger of Extra Space and Life Storage - a $12 billion deal that reshaped the industry - and what it means for the remaining independents. Lucas shares a specific case from Houston, where a three-location operator sold to a REIT at 18 times EBITDA, and Luna pushes back on whether consolidation actually benefits customers. The episode closes with a look at what happens when the acquisition pipeline dries up and how private equity is now entering second-tier markets. A focused, numbers-driven conversation for anyone following the business of real assets.

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