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  • GDPF Staff

Self-Storage Weathers the COVID 19 Storm Like a Champ

Updated: Oct 14, 2021







Default rates of self-storage CMBS loans out class all other asset types by astonishing margins.


The Great Recession showed us that the “needs-based” nature of self-storage as an asset class, tends to equate to lower risk of default unlike all other commercial real estate assets. Storage has sustainable rents and relatively stable occupancy rates even in turbulent times. Such stability and even resiliency explains why the self-storage sector has historically experienced lower loan default rates, and a more rapid time to recovery than most other real estate sectors.




In the last 20 years, even through the Great Recession, default rates have never exceeded 4% for self-storage stabilized assets. Further, default rates remained less than .5% during all of 2020 after maintaining rates at 0% or only slightly above for the previous 4 years. By comparison, overall commercial mortgages in all other asset classes have been much, much higher and at times volatile reaching above10% 2020.