Self-storage sales are booming, showing a 37% increase from last year, according to the latest StorageCafe Quarterly Sales Report, which analyzed Q1 data from Yardi Matrix.
Self-storage sales totaled $855 million nationwide in Q1, and the total square footage of facilities rose 22% year-over-year, reaching over 12 million square feet.
Nationwide, the average sale price per square foot in the self-storage sector is now $117, reflecting a 31% increase from the same time last year.
The priciest transaction in Q1 was recorded in Davie, Fla. — $36 million for a 163,000-square-foot portfolio deal, according to StorageCafe. The highest price per square foot —$387—was recorded in Costa Mesa, Calif.
Other top markets are influenced by demographic and lifestyle factors, including:
- Nashville suburb Murfreesboro, Tenn., which is seeing high population growth
- New Orleans, with high tourism and young residents
- Seattle, facing compact living spaces and urban density
- Vista and Vallego, Calif., offering less expensive housing than their neighbors
- Manahawkin, N.J., a quiet beachfront community, offering second home investments
- Birmingham, Ala., where a growing number of apartment dwellers have insufficient storage
- Henderson, Nev., a retiree hotspot
Investors are increasingly targeting newer self-storage properties, with 38% of assets built after 2010. At the same time, roughly 60% of acquisitions focus on B-grade self-storage properties, reflecting a balanced market approach, StorageCafe says.