---
title: "Do REITs outperform smaller self-storage owners?"
description: "**Short answer:** Not necessarily. Mark calls it a myth that large public operators always beat smaller owners. Recent public REIT same-store revenue growth has been flat to low, and their size brings weaknesses: reliance on fees, bait-and-switch move-in pricing and…"
url: "https://creatingwealththroughselfstorage.com/docs/reits-vs-small-self-storage-owners/"
updated: "2026-10-16"
category: "Market Trends & Outlook"
---

# Do REITs outperform smaller self-storage owners?

**Short answer:** Not necessarily. Mark calls it a myth that large public operators always beat smaller owners. Recent public REIT same-store revenue growth has been flat to low, and their size brings weaknesses: reliance on fees, bait-and-switch move-in pricing and aggressive rate increases on long-term customers. Smaller owners can compete by pricing fairly and keeping customers longer.

## The weaknesses Mark points to

- **Fees.** A meaningful share of large operators’ revenue growth comes from fees, including their own tenant protection plans. Smaller owners can waive or reduce fees when needed to win a rental.
- **Bait pricing.** Offers like “$1 first month” followed by sharp increases are drawing new transparency laws state by state.
- **Customer-centric rate increases.** The longer a customer stays, the more and larger the increases, until many move out.

## How smaller owners can win

Mark’s approach is the opposite: educate customers, charge fairly and raise rates steadily but reasonably. In his experience, longer stays plus fair increases can produce stronger revenue growth over time. If a REIT is consistently outperforming your facility, he suggests looking for gaps in how you operate.

Results depend on each facility and market; past results don’t predict future performance.

## Related answers

- [Why do fair, transparent rate increases matter in self-storage?](/docs/fair-transparent-rate-increases/)
- [Why should self-storage operators sell benefits instead of competing on price?](/docs/sell-benefits-not-price/)
- [What trends are shaping the future of self-storage?](/docs/future-of-self-storage-trends/)

**Source:** Mark’s post [Self-Storage Myth Number 2: REITs Outperform Small Self-Storage Owners](/self-storage-myth-number-2-reits-outperform-small-self-storage-owners/)

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