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CubeSmart Sees Positive Trends in New York, Sunbelt Struggles with Supply
2 Aug
Summary
- New York MSA shows accelerating net rental income growth
- Northern New Jersey remains slightly negative year-over-year
- High supply in Sunbelt markets like Atlanta, Houston, and Phoenix delays recovery
As of August 2, 2025, CubeSmart, a prominent self-storage real estate investment trust (REIT), has seen positive trends in its New York metropolitan area operations. According to Christopher Marr, the company's Chief Executive Officer, the New York MSA showed accelerating net rental income growth from the first quarter to the second quarter of the year.
In contrast, the Northern New Jersey market remains slightly negative year-over-year, though it is showing signs of improvement. Marr noted that overall, New York's performance has been strong, benefiting from reduced supply and a loyal customer base.
Regarding the Sunbelt markets, Marr acknowledged that positive trends are evident across these regions, including areas like Atlanta, Houston, and Phoenix. However, the high supply in these markets is prolonging the recovery process. Despite this challenge, the CEO expressed optimism, stating that the company expects better performance in these Sunbelt markets over time.
The company's Chief Financial Officer, Timothy Martin, also discussed CubeSmart's approach to acquisitions in the current market. The focus remains on high-quality assets in top metropolitan statistical areas (MSAs). While deal volume has increased, Martin noted that pricing has not been as compelling. To fund potential acquisitions, CubeSmart has an $850 million line of credit and strong cash flow, allowing it to avoid relying solely on equity.
