Storage

Storage demand thrives on change, and performance can be equally strong in both upturns and downturns, when household consolidation makes space rental financially preferable. In dense urban areas with higher barriers to new development, self-storage gives vital flexibility to space-constrained residents and businesses. The wide range of uses and frequent price rebalancing allow adaptation to every economic climate.

Despite the consolidation of Self-Storage facilities since Virtus began investing in the space in 2008, the industry remains highly fragmented with players of different profiles, sizing and levels of sophistication.  This fragmentation combined with wide ranges of operational expertise and potentially less favorable capital structures creates an interesting ecosystem for outsized return potential, albeit at smaller bite sizes.

Cold Storage is typically a large warehouse that is temperature and humidity controlled whereby perishable items, primarily food stock, can be stored to prolong shelf life and make them available for distribution eventually to grocery stores, restaurants and other consumer oriented food settings. This social infrastructure segment generally has perennial demand and also benefits from higher barriers to entry than typical industrial space, but much of the space is directly owned by users rather than private investors, and it requires specialty fit-out and operational oversight.