336. The #1 Lie Costing Self Storage Investors Millions
Feb 17, 2026
A candid dismantling of the “near-zero risk” story in self storage and why that belief has fooled investors. A look at how reporting and CMBS data hide real distress. An examination of construction and lease-up loans creating current vulnerabilities. A focus on where the biggest bargains and risks are right now.
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insights INSIGHT
CMBS Data Masks True Self-Storage Distress
Public CMBS default stats only cover ~12% of self-storage debt and hugely understate industry distress.
AJ Osborne shows those CMBS numbers reflect big-city, high-value stabilized assets, not local construction or lease-up failures.
insights INSIGHT
Why Multifamily Stats Look Worse Than Storage
Multifamily CMBS coverage is ~52% so public distress stats are a reliable barometer for that sector.
Self-storage visibility is far lower because many loans are local banks, credit unions, or non-public lenders.
insights INSIGHT
New Construction and Lease-Up Drive Current Failures
Many recently developed self-storage projects started 2019–2021 only stabilized in 2023–24 and faced a far higher rate environment.
Those CO and lease-up projects are the highest source of current distress and forced sales.
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The self storage industryis often described as one of the safest asset classes in commercial real estate. Low default rates. Recession-proof demand. An industry that rarely goes out of business. Only a fraction of a percentage of owners ever get foreclosed on.
That story is a lie.
You’ve heard it before. You’ve probably said it to other investors, your friends, and family when they ask you why you own a self storage facility or why you want to own one.
This is not reality—and today, I’m going to show you proof that the self storage industry is riskier than investors could ever imagine. Why would I say this as someone who owns hundreds of millions in self storage? Because where there’s risk, there’s opportunity, and in 2026, the “perceived” risk is higher than ever—and so is the opportunity.
This is the biggest lie in the self storage industry, and if you believe it, even for a second, you’ll get caught buying at the worst times and sitting on the sidelines during the best. This is how I was able to buy millions in undervalued assets after 2008—and in 2026, I’m doing it all over again.
What you’ll learn in today’s show:
The #1 lie in the self storage industry that is costing investors millions
How I’m buying majorly discounted self storage facilities in 2026
The self storage facilities that are at the greatest risk right now and need a buyer to save them
Self Storage Income 