Heitman and Andover seed self-storage JV with 106 properties

Heitman and Andover Properties have launched a self-storage joint venture seeded with 106 properties across 16 states, according to a Wednesday press release, and the partners say they intend to grow the portfolio across U.S. markets. PRED's records describe the ventures as spanning value-add and core-plus strategies.

The release does not disclose the equity commitment or the identity of the venture's investors.

Andover chief executive Brian Cohen called the sector an "inflection point" and said the partnership expects "a recovery in rents and occupancy may be driven by declining new supply and strengthening demand." He added, "We therefore believe the current market environment presents an exceptional buying opportunity."

Both sides bring operating history. Andover, which invests in alternative real estate including RV parks, car washes and manufactured housing, operates Storage King USA and reports a portfolio exceeding 15 million square feet and 100,000 units. Heitman has invested in self-storage since 1996, and its portfolio spans more than 1,600 properties across 14 countries.

The new venture's 106 properties compare with the 79 facilities and 4.9 million square feet that seeded Heitman's May self-storage acquisition strategy. That vehicle drew $275 million in commitments and a further $200 million in co-investment funds and sought to improve the properties through operational enhancements.

Yardi Matrix reported that new self-storage supply fell nearly 19% year over year in the second quarter to 22 million square feet, with new construction down nearly 20% from 2025 levels to 15 million square feet as rising debt and construction costs weigh on starts. "There are few signs that a meaningful rebound in self-storage new-development activity will take hold in the second half of 2026," Yardi said, citing tariffs, the Iran War and the artificial intelligence buildout as forces keeping short- and long-term interest rates elevated.

Heitman called self-storage a "niche-to-necessity" industry in a 2025 white paper, and it points to the sector's history of outperforming other commercial real estate through the dot-com bust and the pandemic, plus monthly pricing that lets operators reset rents to market. Asset values have fallen 11% from their peaks, according to Bisnow.