A new report from Marcus & Millichap forecasts an increase in self storage investment activity this year as banks sell off real estate-owned (REO) properties, drawing regional syndicates from the sidelines to target Class B/C assets throughout the Sun Belt.

The beneficiaries of this activity will include California and Florida, which are expected to register a sizable share of closings as maturing loans and soft operations push properties into foreclosure, especially with banks still hesitant to refinance devalued assets.