Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

SELF STORAGE: DEMAND DRIVERS Migration and downsizing, across multiple generations, provide robust demand

• Self storage is driven by a variety of factors including migration (over short or long distances), home downsizing, crossing other life thresholds (college graduation, family formation, marriage, death). • Exogenous events, such as the COVID-19 pandemic, can also spur substantial growth in the sector as migration was kickstarted to record levels temporarily and storage space became a necessity. • While home sales have slowed slightly, forecasted rise in sales will also drive need for self storage capacity in the mid- and long-term. • Use of self storage is prevalent across generations, with over half of Baby Boomers and Gen X respondents in a StorageCafe survey affirming use of storage units. Perhaps more surprising was the prevalency among younger

Rising Home Sales Push Demand for Temporary Storage Space

Demand Prevalent Across Generations

60%

7

54%

51%

50%

6

40%

40%

5

34%

30%

4

25%

20%

3

10%

2 Home Sales (Millions)

0%

1

generations, suggesting further runway as Millennials and Gen Z continue to grow their consumer footprint.

0

% of population who have used self storage

2015Q1

2016Q1

2017Q1

2018Q1

2019Q1

2020Q1

2021Q1

2022Q1

2023Q1

2024Q1

2025Q1

2026Q1

2027Q1

2028Q1

2029Q1

2030Q1

Source: Moody’s Analytics, National Association of Realtors (NAR), StorageCafe, Cushman & Wakefield Research

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