As we draw the year to a close, the likely 2025 sale result in the self storage sector may knock you off your seat. While some results are difficult to measure precisely, Four Leaves estimates total transaction volume across Australia and New Zealand will exceed $5.5 billion if all announced deals proceed. This makes 2025, by a clear margin, the most active year on record for the Australasian self storage market, and one that will be hard to top.

The Standout Deals

These transactions highlight the increasing scale of major deals and the inflow of major capital targeting the sector.

However, it was not only major portfolio transactions that drove this record year. Activity lifted across the board, with close to $350 million of standalone transactions also agreed – demonstrating continued depth and liquidity at the individual asset level.

Key Trends

• Private equity has emerged as the dominant buyer group. Once a two-horse race between the listed REITs (National Storage and Abacus Storage King) private equity accounted for circa 87% of deals agreed in 2025, representing a significant shift from historic norms.

• Capitalisation rates remain firm, with the potential for continued tightening in prime metropolitan markets as private equity competes aggressively for core opportunities.

• Second-tier investors are adopting a two-pronged strategy, balancing exposure between less-competitive regional markets offering stronger yields, while also targeting core assets to strengthen portfolio quality.

• Vendor confidence is rising, with more owners testing the market amid strong results, depth of capital and increased buyer competition.

• The buyer pool continues to expand across all segments, from first-time entrants through to global institutional investors seeking scalable platforms.

What to Expect in 2026

Looking ahead, momentum is expected to continue. While transaction volumes may moderate from the extraordinary highs of 2025, pricing is likely to remain resilient, supported by deep capital pools with heightened interest in storage, limited supply of high-quality assets and strong operating fundamentals. Portfolio deals are expected to continue, albeit with less opportunities available, and a healthy pipeline of standalone assets will continue. Four Leaves is entering January with a jam-packed listing schedule which is an unusual position for the property sector. We are proud to have once again sold more self storage assets than any other agency across Australia and New Zealand this year.

If 2025 marked a turning point for the sector, 2026 is shaping up to be a year of consolidation, selectivity and continued institutionalisation of the self storage market across Australia and New Zealand.