According to a new study, the market for self-storage facilities continues to expand, with investors scooping up properties just this year alone worth a combined $2.5 billion nationally.
The commercial real estate data and research firm Yardi Matrix, which is based in Scottsdale, lists New York City as the nation’s top self-storage market, with transaction volumes between January and June of this year of just over $260 million. But in a solid second place is the Phoenix market, which so far this year has seen transaction volumes in excess of $201 million. Three other cities made up Yardi Matrix’s top 5: Washington, D.C., Chicago, and Miami, with 2021 transaction volumes ranging between $105 million and $168 million. Analysts say that self-storage markets are expected to grow particularly on the East coast and in the West. The industry, those same analysts says, has proven resilient not only during the Great Recession, but during the recent Covid-19 lockdown as well. Overall, the number of self-storage units built in the country has increased from 37.2 million in 2017 to 49.4 million last year. The Phoenix market, which includes the boom cities of Chandler and Mesa, saw an increase of 1.8 million square feet of self-storage space last year with 22 new facilities, for a total of 33 million square feet overall. Currently, another 4 million square feet is under construction in the Phoenix market, far outpacing any other metro area. New national self-storage projects announced in July include the building of a 9-story facility in Bethesda, Maryland; two four-story self-storage units in Des Moines; and the self-storage repurposing of a former JC Penny store in Hanover, Pennsylvania. By Garry Boulard
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