The Fed is a group of people who control money in the US. They made it harder and more expensive to borrow money, which affects many things including self-storage places. Self-storage is where people store their extra stuff in lockers. Even though fewer people are buying and selling these storage places, they still have high occupancy rates, meaning most of the spaces are taken. This is because people need a place to keep their stuff when they don't have room at home or move to a new house. So, self-storage is doing okay despite the Fed making it harder to borrow money. Read from source...

- The article starts with a vague and exaggerated claim that self-storage has shown "a great deal of resilience" in the downturn, without providing any evidence or data to support it. This is an attempt to create a positive impression of the sector before presenting some negative factors.
- The article uses outdated statistics (2022) when discussing the average occupancy rate and sale volume, while mentioning the pandemic-era highs in 2021. This creates a misleading impression that the sector has declined less than it actually has since then. A more accurate comparison would be to use recent data from 2023 or early 2024.
- The article blames the drop in deal volume on the Fed's rate hikes, without considering other possible factors such as rising inflation, higher interest rates, market uncertainty, changing consumer preferences, or increased competition from online platforms and alternative storage solutions. This is an oversimplification that ignores the complexity of the economic environment and the dynamics of the self-storage industry.
- The article ends abruptly with a sentence fragment, without providing any conclusion, summary, or outlook for the future of self-storage valuations. This leaves the reader hanging and unsatisfied, as well as questioning the credibility and professionalism of the author.

Neutral
Summary of Key Points:
- Self-storage valuations have shown resilience during the downturn with an average occupancy rate of 93% in 2022.
- Sale rate and scope of sales decreased from record highs in 2021 but still at a stable level of around $10 billion in 2022.
- Fed's interest rate hikes have led to a drop in deal volume as major players stay on the sidelines or wait for better opportunities.

Given that self-storage valuations have shown resilience in this downturn, I would suggest considering a diversified portfolio of self-storage REITs (real estate investment trusts) and funds for exposure to the sector. Some examples are Public Storage (PSA), Extra Space Storage (EXR), LifeStorage (LSI), and Global Self Storage (SELF). These companies have demonstrated strong operational performance, high occupancy rates, and stable cash flows, despite the challenging economic environment. However, as with any investment, there are risks involved, such as interest rate fluctuations, inflation, supply chain disruptions, and potential changes in consumer preferences or demand for self-storage services. Therefore, it is important to monitor the market conditions, perform due diligence on the companies' financials and management teams, and consult with a professional financial advisor before making any investment decisions.