The Outlook for Self Storage & Metal Building Development

What investors and developers should expect in the next 12–18 months?

The self storage and metal building sectors have proven resilient, but the next year and a half will be marked by stabilization rather than rapid expansion. Developers and investors who understand the shifting landscape will be best positioned to capture opportunities while managing risk.

In our previous blog, “2025 Self Storage Industry Growth Projections and Trends,” we looked at top trends and innovations expected to shape the construction industry this year, and in our blog, “Is Self Storage a Good Investment for 2025?” we addressed the factors of why this asset class is still an appealing real estate investment.

Below is Forge Building Company’s take on where the market is headed in the next 12-18 months and how to position your next project to win.

1 Self Storage: Stabilizing After the Boom

After record demand in recent years, the self storage market is normalizing. Still, long-term demand drivers such as downsizing, mobility, and e-commerce support steady growth. In the next 12-18 months, expect modest rent gains, selective new builds, and an increased focus on operational efficiency and tenant retention.

• Storage rents are firming. National data shows advertised asking rates posted their strongest monthly increase in nearly three years in August 2025. This is an early sign that pricing power is returning as move-ins improve and concessions moderate ¹.
• Occupancy remains healthy, with regional outperformance. Markets in the Northeast, Midwest, and West are showing signs of improvement. Markets such as Las Vegas, Salt Lake City, Columbus, and Nashville are also poised to deliver near-term rent gains due to low vacancies, limited new supply, and strong demographic growth ². Additionally, Sacramento and San Antonio had more lease-up supply in August 2025 than in August 2024. Despite a high level of lease-up supply, Tampa also continues to show strong rate performance, driven by elevated demand. In the next 12-18 months, expect modest, market-by-market rent growth in the different regions across the U.S. rather than a one-size-fits-all rally.

2 Metal Buildings: Cost Pressure Meets Innovation

Metal buildings remain a cornerstone for storage, industrial, and flex projects. While steel and material prices have been volatile, forecasts suggest some easing ahead. At the same time, innovations in design, prefabrication, and sustainability are helping developers control costs and differentiate projects. Locking in on contracts early and partnering with reliable developers, such as Forge Building Company, will be key in the near term.

3 Capital Markets: Cautious, But Thawing

• CRE investment activity is picking up from 2024 lows. Large brokerages expect transaction volumes to rise as rate volatility gradually subsides and price discoveries improve, with storage and industrial still favored for durable cash flow ³.

• Debt remains selective. Lenders continue to fund strong sponsors, reliable contractor partners, and a clear path to stabilization. Underwriting favors realistic lease-up, conservative exit caps, and demonstrated cost control.

4 Costs: Steel, Tariffs, and Development

There’s been growing discussion around the potential impact of rising steel tariffs on construction and development. While some of these concerns are valid, it’s important to view them through the lens of today’s self storage market realities—particularly in how developers are adapting to evolving economic conditions.

• Preparing for tariff impact. While some news highlights the potential for increased construction costs due to tariffs, it should be recognized that companies, such as Forge Building Company, have proactively adapted their sourcing strategies. In anticipation of the tariff impact, Forge was able to procure steel and continues to work with the manufacturers to get the best pricing on steel packages.
  In times like these, that commitment matters more than ever—not just for quality and control, but for fueling the success of self storage development across the country.
• Strategic planning and market positioning. It’s also crucial to consider the strategic implications of delaying development projects in anticipation of potential cost increases. In a competitive market, postponing construction can result in missed opportunities, allowing other developers to capture market share and establish a foothold in key locations. As the adage goes, “If there's demand and you don't build it, someone else will.”

The self storage industry has demonstrated resilience and adaptability in the face of past economic challenges. That’s why it is key to working with a developer who will ensure your project is well-planned, factoring in current costs and potential future fluctuations, positioning themselves to meet market demand effectively, and capitalizing on long-term growth.

5 What Will Move the Needle on Pro Formas in 2026–2027 Deliveries?

Here’s our advice.

• Scalability and Expansion Potential. Focus on existing properties with expansion or phasing potential. Look for mismanaged assets that can be optimized through layout, technology, or pricing. Phased development reduces capital risk while matching real-time demand.
• Mixed-Use Builds. Adding in flex units and climate-control upgrades unlocks new revenue potential.
• Target submarkets with strong demographics and barriers to entry. To protect performance, investors should target submarkets with strong demographics and barriers to entry. Differentiating through superior customer service, enhanced security, and a diverse self storage unit mix helps retain tenants even in competitive environments.

How Forge De-Risks the Next 12–18 Months

• Design-Build integration: We align architecture, engineering, and estimating from day one to lock steel scope early and preserve schedule float where it matters most
• Procurement strategy: Manufacturer relationships give Forge pre-buy options to hedge tariff and lead-time risk.
• Market-smart unit mixes: Our planning process forms the foundation of every successful project, combining expert site analysis with intelligent layout design to maximize space utilization, operational efficiency, and long-term return on investment—no cookie cutters (see also our blog titled, “Determining the Right Unit Mix”).

Bottom line

The next 12-18 months are ones of moderation, not slowdown. Disciplined underwriting, cost awareness, and market selectivity will define success. With demand stabilizing, supply easing, and capital slowly thawing, well-located storage and flex assets can enter 2026 and 2027 in an enviable position, provided you lock cost risk early and design for operational efficiency.

Those who balance patience with preparedness and leverage the efficiencies of steel metal building experts, such as Forge Building Company, will be positioned to thrive as conditions improve.

Let’s build it right.

References

1. Yardi Matrix. (2025, September 17). Retrieved from yardimatrix.com: https://www.yardi.com/news/press-releases/yardi-matrix-report-highlights-encouraging-u-s-self-storage-sector-trends/

2. Affleck, J. (2024, November 6). CBRE Investment Management. Retrieved from https://www.cbreim.com/: https://www.cbreim.com/insights/articles/unpacking-self-storage-a-sector-on-the-move

3. Chin, H. (2025, August 7). CBRE. Retrieved from https://www.cbre.com/: https://www.cbre.com/insights/podcasts/2025-bonus-ep-the-commercial-real-estate-outlook-for-the-rest-of-2025