Non-bank capital sources are filling the vacuum left by retreating banks. Experts weigh in on the availability of funding and what’s ahead.
The self storage lending landscape has changed a lot over the past few years. Today, it offers borrowers the opportunity to benefit from a mix of traditional and alternative financing options.
Banks were the dominant lenders in the self storage sector in the first three quarters of 2020, accounting for two-thirds of the market, according to Yardi Matrix data. By 2024, however, there was an evident shift toward alternative options, with the share of loans originated by banks dropping to less than half of the market over the same period. While this was partly due to the health crisis-induced slowdown in investment activity and borrowers putting off refinancing, lending volume for debt funds and especially private lenders saw significant increases compared to previous years…