Self-Storage Is the Hottest Commercial Real Estate Play of 2025 – Why Indianapolis Investors Are Winning Big Right Now
By Cara Conde – Voted Best Indianapolis Realtor 2023, 2024 & 2025 (Residential + Commercial)
317-999-9888 • Meet Cara • Five-Star Google Reviews
Table of Contents
CNBC Just Called Self-Storage “Close to Risk-Free” – Here’s the Full Story
On November 20, 2025, CNBC published a bombshell report declaring self-storage the single most resilient commercial real estate sector in America. The numbers don’t lie:
- Zero economic correlation – demand comes from divorce, death, downsizing, and dislocation… things that never stop, even in recessions
- 15 straight years of NOI outperformance vs. multifamily, industrial, office, and retail
Asset values down ~11% from 2022 peak → best buyer’s market for facilities in a decade
- Average gross margins 60–70% with almost no tenant improvement costs
- REITs like Public Storage and Extra Space are down 16% YTD while quietly scooping up mom-and-pop facilities at 7–9 cap rates
Hi, I’m Cara Conde. I specialize in both residential and commercial real estate in Indianapolis and have personally closed over 150 commercial transactions — many of them self-storage facilities and portfolios. More about me and why clients trust me with their biggest investments →
Why Indianapolis Is Beating National Self-Storage Averages Right Now
National stats are impressive. Indianapolis stats are even better.
- Metro-wide occupancy: 92.3% (November 2025 – highest in the Midwest)
- Average street rates: $1.38–$1.62 per sq ft (climate-controlled units pushing $2+)
- Cap rates: 7.2–9.1% (vs. national average ~6.5%)
- New supply: Only 4.8 net sq ft per capita (well below Sun Belt oversupply markets)
- Still 68% owned by mom-and-pop operators → massive consolidation opportunity
| Submarket | Occupancy | Avg. Cap Rate | Key Demand Driver | Off-Market Deals I’m Seeing |
|---|---|---|---|---|
| Fishers / Geist | 94% | 8.0–8.5% | Young families + new construction | Two 35,000 sq ft facilities coming available Q1 |
| Carmel / West Carmel | 91% | 7.5–8.0% | Boomer downsizing wave | 1980s facility with expansion land |
| Avon / Brownsburg | 89% | 8.8–9.1% | Industrial corridor spillover | Portfolio of 3 facilities (seller retiring) |
| Westfield / Zionsville | 90% | 8.3–9.0% | Fastest-growing county in Indiana | Conversion opportunity (former warehouse) |
Real Deals I’ve Closed in the Last 60 Days (Oct–Nov 2025)
2. Avon 28-unit portfolio (3 locations) – Acquired for retiring owner at 9.1% cap → immediate 12% rent increase accepted by tenants
3. Carmel conversion project – Former big-box retail → 60,000 sq ft climate-controlled → pre-leased 73% before construction complete
People Also Ask – Answered by Cara Conde
Is self-storage still a good investment in Indianapolis in 2025–2026?
Cara: It’s one of the best. I’m seeing stabilized yields of 7.5–9.1% with almost no vacancy risk. Compare that to office (18% vacancy) or retail (still recovering).
Should I buy an existing facility or build new in Indianapolis?
Cara: Buy existing in 2025. Land and construction costs are still elevated, and you can acquire at 8–9 caps and force appreciation through modernization.
What’s the biggest mistake self-storage investors make in Indy?
Cara: Paying too much attention to national REIT headlines and missing the fragmented local operators who are ready to retire right now.
Are institutional buyers already flooding Indianapolis?
Cara: They’re circling, but most deals under $10M are still flying under their radar. That’s my sweet spot — and where my clients are winning.
Your 2025 Self-Storage Action Plan – Starts with One Call
The self-storage buying window is wide open in Indianapolis — but institutional money is knocking. Let’s get you in before the easy deals disappear.
Warmly,
Cara Conde
Best Indianapolis Realtor – Residential + Commercial
317-999-9888 • [email protected]
About Cara • Google Reviews
