Andover Properties and Heitman Launch Joint Self-Storage Platform

The firms are targeting what they describe as an opportune entry point in the self-storage cycle, characterized by discounted valuations and a potential rebound in rents. According to Andover CEO Brian Cohen, the sector is experiencing an inflection point where declining new supply and strengthening demand create favorable conditions for growth. Andover intends to leverage its vertically integrated operating platform to drive property-level improvements, while Heitman brings nearly three decades of sector experience to the collaboration.

Heitman, which has invested over $15 billion in 1,600 global self-storage properties since 1996, views the current market as a chance to acquire assets at prices well below replacement cost. Doug Gurr, head of U.S. self-storage acquisitions at Heitman, noted that the strategy focuses on markets with strong fundamentals and limited new competition. For Andover, which currently manages over 15 million square feet of space, the venture marks a significant expansion of its investment capabilities. Both companies plan to continue scaling the portfolio in select markets throughout the country.