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Portland’s Dirty Secret

Rents are flat, but Miami is rocking

Hey {{first_name}},

Miami storage rents haven't budged in 12 months, yet developers are rushing to build MORE facilities at the fastest pace in five years.

This makes zero sense… until you follow the money.

What these developers know (that the rental data doesn't show) is reshaping how smart investors evaluate markets.

And once you see the hidden revenue stream they're chasing, you'll understand why "flat rents" might be the biggest fake-out in storage investing.

The counterintuitive strategy I'm about to reveal explains why some of the smartest money in storage is piling into "overbuilt" markets while everyone else runs away…

📊Quick Storage Updates:

Street-to-Contract Rent Spread Reaches Historic Levels: The gap between street rents and contractual rents has widened from 11% in 2020 to 48% in 2025. Operators are using technology and dynamic pricing tools to adjust street rates more frequently, optimizing revenue while managing occupancy – representing a structural shift in value creation. Full breakdown at CapRight.

AI-Powered Revenue Management Becomes Industry Standard: Third-party management companies use AI to refine marketing strategies, streamline call center operations, and provide data-backed performance insights across portfolios. Smart unit monitoring with motion sensors and temperature controls is emerging as a new revenue stream. Toy Storage Nation dives deep.

Build-to-Rent Pipeline Slows as Sun Belt Markets Lead Activity: Build-to-rent activity dips slightly nationwide but remains strong in Sun Belt metros like Phoenix, Dallas, and Atlanta. Full details from CRE Daily.

Here's what's really happening in Miami (and why it's brilliant)…

Traditional storage math says: Flat rents + High supply = Stay away.

But institutional investors discovered something that changes everything:

Hidden “ancillary revenue” now drives

18-24% of total facility income in dense markets.

The Hidden Revenue Streams:

  • Tenant insurance: $12-20/month per unit (70% margin)

  • Truck rentals: $3,000-8,000/month per location

  • Packing supplies: 300-400% markup

  • Business services: Mailboxes, notary, shipping

  • Wine storage: Premium pricing for same square footage

  • RV/Boat storage: Often 3x regular unit revenue

Even better, many of these creative revenue streams are RECESSION-RESISTANT.

When times get tough, people downsize units but keep insurance. They rent trucks to move themselves. They still need boxes and shipping services.

One facility I looked at hit break even at just 62% occupancy by integrating these niche strategies.

The key is that dense markets like Miami have the demographics to maximize creative, highly-niched revenue sources:

  • High percentage of renters (more moves)

  • Transient population (shipping/receiving needs)

  • Space-constrained living (lifestyle storage)

  • Business density (commercial services)

Smart developers aren't just looking at today's rental rates.

They're looking at total revenue per customer,

And in markets like Miami, there are outside-the-box ways to boost that number up to 40% higher than traditional storage-only facilities.

If you’re investigating storage opportunities in highly competitive, “saturated” markets…

This bit of creative thinking could turn a total dud into a killer opportunity.

Here’s to your success,

Cody


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