We recently published a list of 12 Best Warehouse and Self-Storage Stocks to Buy Now. In this article, we are going to take a look at where National Storage Affiliates Trust (NYSE:NSA) stands against other best warehouse and self-storage stocks to buy now.
A Quick Look at the Warehousing and Storage Market
The warehouse and self-storage sector plays a vital role in the global economy. This sector is expected to see significant growth and transformation in the coming years. According to a report by The Business Research Company, the warehousing and storage market was estimated to have reached a value of $798.45 billion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.5% during 2025-2029 to reach a value of $1.159 trillion by the end of the forecast period. In 2024, Asia-Pacific was the largest region in the global warehousing and storage industry while North America came in as the second largest region.
This growth is driven by a number of factors including urbanization, growing population, and the rise of e-commerce. There is a rising demand for secure storage solutions as both individuals and businesses downsize their spaces and require additional space for inventory. Warehouses and self-storage facilities are becoming the most feasible solutions for those looking to declutter their homes or store goods for their online businesses.
However, according to the 2024 Self-Storage Market Report by Storeganise, public awareness of self-storage services still remains low. Only 43% of the population knows about these services and only 8.7% of the population is actively considering using self-storage solutions. Those who do use self-storage solutions are highly satisfied with the services. Nevertheless, 39% of customers think that the costs are high. These trends highlight an opportunity for self-storage providers to improve their outreach and marketing efforts while also addressing concerns about pricing to attract a wider audience.
Another key trend in the world of warehousing and self-storage is the integration of advanced technologies. As the demand for storage services rises with the growing logistics needs of retailers and manufacturers, companies offering warehousing and self-storage solutions are adopting new and innovative technologies to improve customer experience and operational efficiency. Technological innovations like smart security solutions and automation are helping facilities modernize and improve their services.
With rising urbanization, technological advancements, and a booming e-commerce sector, the warehouse and self-storage market is expected to continue growing in the foreseeable future.
Methodology
To compile our list of the 12 best warehouse and self-storage stocks to buy now, we looked for the largest warehouse and self-storage companies. We reviewed our own rankings, financial media reports, and various online resources including ETFs to compile a list of the best warehouse and self-storage stocks. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds. The 12 best warehouse and self-storage stocks to buy now are ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is National Storage Affiliates Trust (NSA) the Best Warehouse and Self-Storage Stock to Buy Now?
An exterior view of a large self-storage facility in the US.
National Storage Affiliates Trust (NYSE:NSA) is a real estate investment trust (REIT) that owns, operates, and acquires self-storage facilities in the United States. The company’s properties are primarily located within the top 100 metropolitan statistical areas in the country. National Storage Affiliates Trust (NYSE:NSA) owns and operates over 1,000 self-storage properties located in 42 states and Puerto Rico with about 70 million rentable square feet.
The company has completed the internalization of its participating regional operator (PRO) structure, effective July 1, 2024. This allows National Storage Affiliates Trust (NYSE:NSA) to acquire the PROs’ management agreements and no longer pay any supervisory and administrative fees. This strategic move is expected to lead to annual savings of about $7.5 to $9 million.
The company is strategically focused on internal efficiencies and strategic acquisitions. During the third quarter of 2024, National Storage Affiliates Trust (NYSE:NSA) acquired 18 properties for nearly $150 million. These properties are located in markets where the company already has a strong presence. These investments are expected to improve the overall portfolio quality and enhance the company’s operational efficiencies.
Overall, NSA ranks 12th on our list of best warehouse and self-storage stocks to buy now. While we acknowledge the potential of warehouse and self-storage companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NSA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
