Hey {{first_name}},

Wall Street has swallowed up nearly every other real estate sector, but 41% of storage facilities are still owned by independent operators.

In multifamily, retail and office, the big boys own almost everything.

But in storage, mom and pops still control nearly half the market – and that creates one of the most interesting opportunities in commercial real estate right now…

Here’s a fun fact that I really think a lot of investors don’t realize:

Storage is fundamentally a local business disguised as real estate.

REITs will keep consolidating Class A assets in major metros at 4-5 caps. That's their lane.

But the 41% still run by independents is where deals at 7-9 caps exist.

That's where seller financing is common.

That's where you can buy a facility for $2-3 million instead of $20-30 million.

The opportunity isn't competing for what the REITs want – it's buying the assets they don't want and operating them in a way the large companies can't.

Many mom and pop owners are sitting on facilities operating at 85% occupancy when they could be over 90%.

They're charging $100/month for units that could rent for $140.

They have zero online presence in a world where 85% of customers search on their phones.

The sweet spot is in finding small markets where institutional capital won't deploy.

Second and third tier cities. Facilities needing operational improvements rather than capital expenditures.

That 41% fragmentation isn't going away overnight. And for investors willing to do the work, that's exactly why storage remains one of the best opportunities in commercial real estate.

Here's to finding your edge,

Cody