NYSSA & KeyBanc Storage Conferences: A Market Reset Taking Shape

January 2026

A Candid Start to the Year

The New York Self Storage Association Investment Forum set a refreshingly honest tone to begin 2026. When panelists were asked to describe 2025, words like “scary,” “stuck,” and “slow growth” came up. The commentary was candid and direct, at times uncomfortable, but also constructive. The discussion reflected an industry that has spent several years confronting reality and adjusting behavior. The following day’s KeyBanc Self Storage Conference reinforced many of the same themes, suggesting this perspective is broadly shared across operators, investors, and capital providers. Together, the two events painted a consistent picture of a market recalibrating rather than retreating.

Capital Is More Selective, but Still Active

Across both forums, the message on capital was clear: availability has not disappeared, but discipline has returned. Equity and debt capital remain active, particularly for high-quality assets, strong operating platforms, and realistic business plans. Investors emphasized the importance of market validation in underwriting, credible execution, and alignment between asset-level performance and portfolio objectives. Operators echoed that sentiment, noting that successful capital raises today require clarity, patience, and a willingness to acknowledge risk. Liquidity in the capital markets appears to be improving, transaction activity is beginning to increase, and cap rates have remained relatively steady for stabilized assets in balanced markets.

Operational Discipline Is No Longer Optional

A recurring theme across both conferences was that success increasingly depends on data-driven decision making, with operators relying more heavily on real-time performance metrics, market-level demand signals, and granular operating data to guide pricing, capital allocation, and growth decisions. Additionally, discussions at institutional investor panels at NYSSA, reinforced at KeyBanc, highlighted that operational behavior has shifted in ways that are likely permanent. Revenue quality is taking precedence over headline growth, pricing discipline is improving, and operators are becoming more strategic with concessions. Several panelists noted that strategies adopted over the past two years out of necessity, such as tighter expense management, more conservative assumptions, and greater focus on customer behavior, are not being unwound simply because conditions may improve.

Development Faces a Higher Bar

The development versus acquisition debate was addressed directly at NYSSA and carried into the KeyBanc forum. Development is not off the table, but the margin for error has narrowed considerably. Extended lease-up timelines, more skeptical exit assumptions, and higher capital costs have pushed many investors toward stabilized or near-stabilized acquisitions where downside risk is easier to quantify. Where development is pursued, underwriting assumptions around rent growth, absorption, and time to stabilization are being stress-tested far more aggressively than in prior cycles. The result is a market where fewer projects pencil, but those that do are better positioned to succeed.

A Reset That May Strengthen the Next Cycle

If there was a unifying takeaway from both conferences, it is that the current environment, while challenging, may ultimately strengthen the industry. Early signs of stabilization are beginning to emerge in select markets, supported by slowing supply growth, improving pricing discipline, and resilient customer behavior, even as the recovery remains uneven. Slower growth, selective capital, and heightened scrutiny are forcing better decisions at both the asset and platform level. Rather than chasing scale or short-term performance, the most successful operators and investors appear focused on durability, alignment, and long-term value creation. As echoed across NYSSA and KeyBanc, smart capital is not panicking; it is recalibrating.

For owners and investors, the message is clear: this cycle will reward those who pair discipline and patience with rigorous use of data to make better, more informed decisions at both the asset and portfolio level.