Self-Storage in a Bear Market: Big-Box Conversions, Distress, and Buying Below Replacement Cost | Neil Henderson

Self-storage has long been considered recession resilient, but what happens when high interest rates freeze the housing market and fewer people move? Neil Henderson of Nomad Capital joins Chris Lopez to explain why the industry is facing one of its most difficult markets in decades and what could finally restart demand.

Neil also breaks down Nomad’s strategy of converting vacant big-box stores into climate-controlled storage at roughly half the cost of ground-up construction. They discuss current deal economics, slower lease-ups, competition from major REITs, and why shopping centers with existing retail income could offer investors a valuable margin of safety.

Key takeaways:

• Why self-storage demand is closely connected to home sales

• How big-box conversions can cost significantly less than new construction

• Why slower lease-ups have delayed distributions for storage investors

• What fixed-rate debt can protect during a difficult market cycle

• How major storage REITs can pressure smaller operators

• Where Neil sees the strongest self-storage opportunities heading into 2027

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