Self-Storage Projects Still on the Upside, According to Report, Although 2024 Looks Sketchy8/16/2023 ![]() Responding to a consistently growing demand, new self-storage construction projects have remained strong for most of this year and are expected to remain so up to the end of 2023, says a new report. In its latest Self Storage Forecast, the research analytics firm Yardi Matrix says that self-storage construction starts posted a gain in recent months with project completions heading into 2024 "expected to be higher" than earlier forecasts. At the same time, it is thought that the number of new projects for all of 2024 will eventually wane due to recessionary pressures, "dampening deliveries in 2025-2028." Evidence that the self-storage market, at least for now, is vibrant, was seen in the purchase earlier this month of the Orlando-based Simply Storage Company for $2.2 billion from the real estate investment trust, Public Storage of Glendale, California. Simply Self Storage operates nearly 130 properties in 18 states. While self-storage construction projects are up across the country, the West is proving particularly active. According to Yardi Matrix figures as of late this spring, Phoenix was seeing 19 projects in construction, representing 1.4 million square feet. Las Vegas had 14 projects equal to 1.1 million square feet, with Tucson seeing seven projects for an overall total of 600,000 square feet. Albuquerque was also placed on Yardi Matrix's top ten locations in the West, with three projects representing just under 281,000 square feet. Investment in the self-storage market, meanwhile, has cooled. According to the publication RE Journals, the decline is "partly attributable to the increased cost of debt and a lack of overall liquidity in the market." Even so, many investors continue to regard the self-storage market positively, as one "providing a favorable risk-adjusted return in the current economic climate." By Garry Boulard
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