SSA Blog

Self storage owners have spent years operating under elevated interest rates. On September 16, the Federal Reserve added to that pressure, raising its benchmark rate a quarter point to 3.75% to 4%, its first increase since July 2023, and signaling another may come by year-end.

Wednesday’s benchmark interest rate increase by the Federal Reserve signals a major mood shift for what lies ahead for the self storage industry.

Interest rates have begun an expected steep climb this year as the Federal Reserve moves to get inflation under control.

As busy as the self storage industry has been over the last five to seven years, not much has been written or discussed recently about the language of loan covenants for buying or building self storage facilities.