For years, the strategy felt simple:
Buy in major metros. Follow rooftops. Compete where the headlines are. But markets shift. And lately, more self-storage investors are looking outside the spotlight.
Secondary and tertiary markets are back in play — not as a fallback, but as a strategic move.
The Math Is Making Sense Again
In many primary markets, pricing ran hot. Cap rates compressed. Supply surged. Competition intensified.
Now spreads are tighter. Underwriting leaves less room for error. And new deliveries are pressuring rent growth in some corridors.
Meanwhile, many secondary markets didn’t experience the same institutional overbuild.
That’s creating opportunity:
When acquisition math improves, investors pay attention.
Market Opportunities Are Showing Up
Smaller markets are also benefiting from steady migration patterns, household formation, and business relocation trends — without a matching wave of new storage supply.
Self-storage doesn’t require massive density. It requires:
In the right secondary or tertiary market, those fundamentals can align quietly — and profitably.
Institutional Pullback Creates Operator Opportunity
Secondary and tertiary markets still offer opportunities for:
For experienced operators, lower institutional competition can mean better negotiation leverage and more stable acquisition environments. Less capital chasing every deal often leads to more disciplined pricing — and fewer surprises.
Development Risk Looks Different Outside Major Metros
In primary markets, entitlement timelines can stretch. Land prices are elevated. Construction costs remain stubborn.
In many smaller markets:
That doesn’t mean development is easy. It means the risk profile is different — and sometimes more manageable.
In certain secondary markets, yield-on-cost spreads can outperform primary-market deals where exit cap rate assumptions are tighter. That spread matters.
Final Thought
This isn’t about abandoning major metros. It’s about recognizing where opportunity exists in this cycle.
Secondary and tertiary markets aren’t “lesser” plays. In the right conditions, they offer:
The best opportunities aren’t always in the loudest markets. Sometimes they’re in the ones that quietly make sense.
We’ve recently helped sellers successfully connect with qualified buyers in several secondary and tertiary markets, and we’re continuing to see strong interest in well-positioned assets in these areas.
If you’re considering selling — or looking to acquire in these markets — we’re happy to have a conversation. Reach out to our team to discuss current opportunities. Contact Us
