Where Does the Tidiness Craze Leave Self-Storage Stocks?
It’s not just Marie Kondo putting pressure on the industry. It also faces a glut of supply.
Marie Kondo isn’t helping.
Photographer: David Paul Morris/BloombergOne of the hottest sectors in real estate investment trusts last year may no longer spark joy with investors. Marie Kondo, the tidying-up sensation, may be partly responsible.
Shares of self-storage REITs were up 3 percent last year, including dividends, in what was a tough market for real estate. Hotel REITs fell 12 percent, including dividends, in 2018. REITs focused on shopping centers dropped nearly 15 percent. Overall, REITs lost 5 percent last year, worse than the overall stock market. The basic reason for the success of self-storage is pretty evident to anyone who has lived in America, or just knows Americans: We buy a lot of stuff, and we don’t like to throw it away. That’s created a steady stream of demand for self-storage units for a while.