The average cap rate for class A self-storage properties in the United States was 5.2 percent in the first half of 2023. The cap rate was the highest for the upper decile of class B properties, at 7.5 percent. Cap rates measure the anticipated total return of a real asset and are calculated by dividing the net operating income by the property's value. While properties with higher cap rates suggest higher return, they are also associated with more risk.

The capitalization rate of self-storage investment properties in the United States generally decreased between the second quarter of 2010 to the fourth quarter of 2021. As of the fourth quarter of 2021, the average cap rate of self-storage properties was 5.1 percent.

Public Storage Inc. was the self-storage real estate investment trust (REIT) with the largest market cap in the United States as of November 2023. The market capitalization of Public Storage was 42 billion U.S. dollars, almost twice higher than the second REIT in the ranking, Extra Space Storage Inc.

In 2023, the market capitalization of the self-storage company Public Storage amounted to 53.6 billion U.S. dollars. In the same year, Public Storage was the self-storage operator with the largest market cap in the United States.

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REIT Market Size 2025-2029

The reit market size is forecast to increase by USD 372.8 billion, at a CAGR of 3% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing global demand for warehousing and storage facilities. This trend is fueled by the e-commerce sector's continued expansion, leading to an increased need for efficient logistics and distribution networks. An emerging trend in the market is the rise of self-storage as a service, offering investors attractive returns and catering to the growing consumer preference for flexible and convenient storage solutions. However, the market faces challenges as well. Vertical integration by e-commerce companies poses a threat to the industry, as these companies increasingly control the entire supply chain from production to delivery, potentially reducing the need for third-party logistics and storage providers. Additionally, regulatory changes and economic uncertainties can impact REITs' profitability and investor confidence. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed of these trends and adapt to the evolving landscape.

What will be the Size of the REIT Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with various sectors such as retail, industrial, and commercial real estate experiencing dynamic shifts. Family offices, pension funds, high-net-worth individuals, and sovereign wealth funds increasingly invest in this asset class, seeking diversification and stable returns. Market volatility, driven by economic cycles and interest rate fluctuations, influences investment strategies. Artificial intelligence and property technology are transforming the industry, with data analytics and digital platforms streamlining property management, investment, and appraisal processes. Multifamily housing and single-family homes remain popular choices due to their rental income potential and capital appreciation opportunities. Property taxes, inflation risk, and maintenance costs are essential considerations for investors, requiring effective risk management strategies. Net operating income, return on equity, and occupancy rates are critical performance metrics. Regulatory environment and property regulations also impact the market, influencing capitalization rates and shareholder value. Institutional investors explore equity and debt financing, real estate brokerage, and securities offerings to capitalize on opportunities. Property investment platforms, real estate syndications, and property management companies facilitate access to diverse offerings. Green building standards and sustainable development are gaining traction, attracting socially responsible investors. The ongoing digital transformation of the real estate sector, including smart buildings and hybrid REITs, offers new investment opportunities and challenges. Investors must stay informed of market trends and adapt their strategies accordingly.

How is this REIT Industry segmented?

The reit industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeIndustrialCommercialResidentialApplicationWarehouses and communication centersSelf-storage facilities and data centersOthersProduct TypeTriple netDouble netModified gross leaseFull servicePercentageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSingaporeRest of World (ROW).

By Type Insights

The industrial segment is estimated to witness significant growth during the forecast period.The retail and industrial real estate sectors dominate the market, with industrial real estate leading in 2024. The industrial segment's growth is driven by the increasing demand for warehousing space due to the surge in e-commerce and online sales during the COVID-19 pandemic. Supply chain disruptions have compelled companies to lease more warehouse space to store additional inventory, leading to increased occupancy and rental rates. Furthermore, the proximity of fulfillment centers to metropolitan areas caters to the growing number of online consumers. This trend will continue to fuel the expansion of industrial REITs, offering significant growth opportunities for the market. Asset management companies, pension funds, and high-net-worth individuals are increasingly investing in REITs for their attractive dividend yields and potential for capital appreciation. Private equity firms and family offices are also active players in the market, providing equity financing for REITs. Real estate agents and brokers facilitate transactions, while debt

The FTSE Nareit All Equity REITs index is a free-float adjusted, market capitalization-weighted index of equity real estate investment trusts (REITs) in the United States. As of December 2024, the market cap of the index was *** trillion U.S. dollars, up from *** trillion U.S. dollars in December 2021. To be included in the index, the 140 constituents have to have more than ** percent of total assets in qualifying real estate assets other than mortgages secured by real property. Infrastructure, residential, and retail real estate are the largest REIT segments: Retail real estate REITs had a market cap of *** billion U.S. dollars as of December 2024, while industrial had a market cap of almost ***** billion U.S. dollars. The number of REITs has remained fairly constant in recent years, but the market cap has increased notably.

REITs in the United States saw an annual total return of **** percent in 2023, according to the FTSE Nareit All Equity REITs index. Nevertheless, in 2022, the index had a negative total return of ** percent. Performance improved for all property types, except for diversified, free standing retail, and infrastructure. FTSE Nareit All Equity REITs index is a free-float adjusted, market capitalization-weighted index of equity REITs in the U.S. In 2023, the index included were 140 constituents, with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. The number of REITs has remained fairly constant in recent years, but the market cap of the REITs sector has increased notably.