If Q2 felt uncertain, Q3 sent a clear message: this market rewards owners who stay informed and act decisively. Between shifting interest rates, moderating inflation, and evolving supply pipelines, the self-storage landscape is changing faster than many expected.

That’s exactly why we created the Q3 State of the Market Report — your no-fluff, data-backed guide to understanding what’s selling, what’s renting, and what’s coming online across key markets in Arizona, Utah, and Nevada. And yes, it goes well beyond the public data you’ve already seen.

Before you dive into the full report, here’s a snapshot of what’s shaping the road ahead.

The Fed’s Latest Move: Rate Cuts Arrive (Finally)

After months of holding steady, the Federal Reserve made two consecutive quarter-point rate cuts following the September and October FOMC meetings. This shift marks a notable departure from their earlier “pause and observe” posture.

Why the change?

• Inflation, while still above target, hasn’t surged as dramatically as analysts feared — even after recent tariff actions.
• Tariff-driven uncertainty, once a major source of economic tension, has cooled slightly as markets adjust.
• Economic pressure, though present, feels less acute than it did earlier in the year.

In short: conditions didn’t get better, but they didn’t get worse at the pace many predicted. The Fed finally felt comfortable moving.

What This Means for Commercial Real Estate Borrowers

The immediate reaction from many owners is: “Great — lower rates mean cheaper debt.”
Well… yes and no.

As Berlitz Georges, Managing Director of Wesley Capital Brokerage Firm, explains:

“For commercial real estate borrowers, the recent rate cuts are a welcoming development, but they are only one piece of the pricing equation. Commercial real estate (CRE) loan pricing is typically tied to long-term Treasury benchmarks, most commonly the 5-year or 10-year yield plus a lender credit spread. Both components remain higher than they were during the historically low-rate environment.”

Translation:
Rates are softer, but we are nowhere near the cheap-money era of 2020–2021.

Here’s the real story:

• Long-term Treasury yields remain elevated compared to the low-rate environment.
• Lender spreads, while gradually tightening, aren’t back to “easy money” levels.
• Financing costs are improving — but not fast.

Still, Georges points out a key strategic opportunity:

“Investors positioned to act decisively, particularly on strong well-underwritten assets, may benefit from locking in terms before competition increases and spreads potentially compress further as the market adjusts to the Fed’s shift in policy.”

In other words:
Early movers may win. Waiting for “perfect conditions” could cost more than it saves.

Self-Storage Performance in Q3: The Highlights

Our Q3 State of the Market Report goes deeper, but here are a few standout trends from across the Southwest:

1. Sales Activity Stabilized — and Revealed Real Price Discovery

We saw sellers become more realistic and buyers become more selective, creating healthier (and more honest) deal flow.

2. Market Rents Show Mixed Movement

Some markets held firm or ticked up slightly. Others softened under the weight of new supply — especially in metros that overbuilt during 2021–2022.

3. New Supply Is Still a Wild Card

Q3’s pipeline shows a slowdown in starts but a steady pace of completions. That means operators must know what’s coming online nearby if they want to keep occupancy and revenue stable.

Why the Q3 Report Matters Right Now

If you’re making decisions about:

• rate adjustments
• refinance timing
• disposition
• expansion
• development
• revenue optimization

…you cannot rely on outdated data or broad national reports.

Our Q3 report shows:

• What actually sold (and for how much)
• Where market rents shifted
• Which submarkets face new supply pressure
• Cap rate sentiment from active buyers and lenders
• Local intelligence you won’t find in public datasets

This isn’t a highlight reel — it’s the actionable intel you need before Q4 and 2025 planning.

Get Your FREE Q3 State of the Market Report

Guessing in this market is expensive.

The owners who outperform are the ones who stay informed.

Get the Q3 trends you won’t find in public reports — FREE.

Request here: https://tr.ee/OgeY0iGcfU

If you want help interpreting what this means for your facility or portfolio, we’re here to walk you through it.

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