As principal, Cory Sylvester leads site selection, investment committee, and technology architecture for DXD Capital, a unique hybrid platform of private equity, real estate development, and proprietary technology that leverages data at scale to identify optimal self storage investments. His innovative efforts drive the evolving proprietary technology that is core to DXD’s differentiation. In addition to participating in the $53 million capital raise, Cory has built out the national real estate development team.

He is also a founding Principal of Radius+ and responsible for overseeing the data validation efforts for Radius+’s core datasets. Before founding Radius+, he spent six years advising hedge funds in the technology space at Columbus Circle Investors and J.P. Morgan Asset Management. He started his career at J.P. Morgan’s Investment Bank after graduating with a Bachelor of Arts in Economics from Skidmore College.

DXD Capital recently released it’s Self Storage Report for the second quarter of 2025. In this Q&A, Cory discusses the state of the self storage industry.

What surprised you about the Q2 numbers on the state of self storage?

The biggest surprise was the return to positive street rate growth across all three major REITs. After more than two years of rate compression, we saw Extra Space post >2% YoY growth and Public Storage also report modest increases. This shift suggests that pricing power is returning, driven by a combination of stable occupancy and a constrained new supply pipeline.

What is your outlook for self storage rental rates for the remainder of the year and into 2026?

We expect moderate rental rate growth to continue through the remainder of 2025, particularly in high-barrier markets where supply is limited. In 2026, if interest rates begin to decline and home transaction volumes increase, we anticipate stronger upward pressure on rental rates, especially as operators regain pricing power without sacrificing occupancy.

What are your expectations for self storage occupancy as we head into 2026?

Occupancy is expected to remain elevated and stable. The lack of new supply and disciplined discounting practices are helping REITs hold occupancy even while pushing rents. As new household formations and moving activity increase in 2026, occupancy may tick up slightly, especially in submarkets with significant pent-up housing demand.

How would you describe the state of self storage development?

Development is constrained. Tighter lending standards, construction cost inflation, and longer entitlement timelines have significantly reduced starts. Many developers are sitting on entitled land waiting for debt markets to reopen. The result is a sharp slowdown in deliveries, which we believe will persist into 2027. This supply discipline is a major tailwind for existing operators and new developments that can get capitalized.

What are some of the most underserved markets for self storage?

Markets with limited developable land, high regulatory barriers, and wealthy populations continue to be underserved.

What are some challenges impacting self storage development?

Existing home sales are constrained due to the rapid increase in mortgage rates over the last 24 months – higher interest rates has reduced the affordability of homes, which has resulted in hampered population mobility, which is directly correlated to storage demand.

How would you describe the state of investment in self storage properties?

It’s a bifurcated market. Stabilized assets in strong locations are still trading, often at compressed yields, while lease-up deals and land are being repriced or passed over entirely.

How is the current uncertainty of the lending market impacting self storage investment?

The lending market is the main constraint on new investment. Many regional and national lenders remain risk-averse or overexposed to CRE. Construction financing for self storage is difficult to obtain, and when it is, leverage levels are reduced. That said, the scarcity of new development due to this credit tightening is helping existing assets outperform and sets the stage for strong returns for those who can build or buy in the current cycle.

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