The retail sector is comprised of several product types including malls of various sizes and configurations, big box retail, stand alone shops, and other specific products such as self-storage. The advent of internet retailing and changing consumer behavior creates challenges for some retail operations and opportunities for others. This has led to a focus by many investors in retail activity that is inherently physical in nature, or which includes a personal experience for which the location and installations are intrinsic to the product or service being sold. Self-storage is one of these retails services that requires a physical storefront and facility. For this reason, amongst others, self-storage is a product that TRX is actively developing in Brazil and the United States.
Self-Storage outperforms other real estate asset classes in the long term, as demand for self-storage services remains consistent during economic downturns. The operational management for this asset class not only executes the origination, development and stabilization, but also the ongoing revenue generation. This continued, proactive management is necessary as self-storage stores require consistent releasing of many storage units for short terms, and; in this regard, they combine aspects of retail stores, hotels, and warehouses. Market analysis is complex for this reason. TRX, along with its strategic partner, Metro Self Storage; provides the ability to expertly manage self-storage developments from origination to stabilization or exit.
Self Storage – Performance
Self storage has historically out-performed other asset classes over the long term.
Historical REIT Performance – Self Storage vs. Other Asset Classes Average, Total, Annual Return