Top 10 Markets for Self Storage Transactions
These metros accounted for more than 40 percent of the nation’s total deal volume, according to Yardi Matrix.
The self storage sector enjoyed a record-setting spell in 2022, with property values climbing in major metros. Nationally, more than 112.7 million square feet space traded totaling nearly $10.3 billion in self storage transactions, according to Yardi Matrix. While this marks a slight slump compared to 2021, when the closed deals added up to $12.4 billion, it is a considerable improvement over 2020, when transaction volume amounted to $4.5 billion.
The table below highlights the top ten self storage markets with the highest overall sales volume in 2022, based on Yardi Matrix data. The transactions include both traditional self storages as well as those properties that have dedicated RV and boat storage as well. Overall, the metros on the list account for 42.6 percent of total investment across the nation.
1. New York
New York tops our list once again with more than $998 million in self storage transactions closed in 2022. While the transaction volume is not as high as in 2021—when StorageMart’s $3 billion acquisition of Manhattan Mini Storage propelled the metro—it accounted for 9.7 percent of all transactions nationwide and represented a 30.5 percent improvement over 2020 numbers. Overall, 53 facilities totaling 4.6 million square feet of storage space traded across New York coming to an average price per square foot of $294.3, lower than both the $597.2 average in 2021 as well as the $335.4 average in 2020.
Notable transactions included Brookfield Properties kicking the year off with a five-property acquisition across Greater New York. Two different sellers received $164.2 million for a 113,000-square-foot property in Paterson, N.J., a 100,279-square-foot facility in the Bronx and three properties totaling 233,496 square feet in Brooklyn. Meanwhile, Success Academy Charter Schools shelled out $105 million to acquire River Ave Self Storage in the Bronx from Maddd Equities. The new owner plans to redevelop the property into a six-story K-12 school.
Phoenix saw approximately $498.2 million in completed deals in 2022, a 6.9 percent drop compared to the 2021 transaction volume, but nearly quadrupling the $130.9 million traded in 2020. Investors sold 4.1 million square feet of storage space across 42 properties, slightly more than the 3.9 million square feet traded in 2021 and three times the 2020 numbers. The average price per square foot also increased to $156.4, a 15.8 percent growth compared to the 2021 average and a nearly 53 percent rise equated to the 2020 figure.
Among the transactions, that achieved the highest price per square foot was Extra Space Storage acquiring a 55,211 square-foot facility in Surprise, Ariz., for $16.3 million or $294.3 price per square foot. The Schomac Group sold an 87,128-square-foot property in Chandler, Ariz., to Strategic Asset Management for $292.6 per square foot.
Transaction volume in the Atlanta metro added up to nearly $475.4 million in 2022. This means a 21.8 percent increase over the 2021 numbers as well as a significant rise compared to the deals finalized in 2020 which amounted to $194.6 million. The average price per square foot also increased to $171.7, a notable 56.9 percent improvement compared to the average recorded in 2021 and well above the $71.3 average price per square foot of 2020. Overall, investors traded 52 facilities in 2022 encompassing more than 3.5 million square feet.
CubeSmart’s disposition of a four-property portfolio totaling 345,541 square feet was one of the metro’s largest investments of 2022. National Storage Affiliates picked up the assets for a combined $71.5 million and rebranded them as SecurCare Self Storage. The transaction was part of a larger sale between the REITs.
More than 2.9 million square feet of self storage space traded in 2022 throughout the Miami market, slightly less than in 2021 and substantially more than the 908,956 square feet that had traded in 2020. Completed transactions showed a similar rise, with sales amounting to $418.3 million in 2022, above the $351.6 million transaction volume of 2021, and well beyond the $73.5 million in deals closed in 2020. In 2022, 32 properties traded at an average price per square foot of $184.1. The average price also showed an increase compared to previous years, up 7.9 percent compared to 2021 and a 52.3 percent boost contrasted to 2020.
In October, Merit Hill Capital paid $17.6 million to Everest Properties for a 71,646-square-foot facility in Davie, Fla. The sale price equates to $244.9 per square foot, one of the highest recorded across the metro in 2022. Rebranded as Extra Space Storage, the 1989-built property includes both traditional as well as RV and boat storage space.
Investors completed $362.5 million in self storage transactions throughout 2022. That's nearly the exact amount that traded in 2021—$362.3 million—while almost quadrupling the approximately $93.4 million transaction volume of 2020. Investors traded 48 self storage assets, totaling roughly 4.9 million square feet, the largest footprint traded among the ten metros. Denver was the only metro on the list where the price per square foot dropped below the national average of $137.1 coming in at $88.1. While the price per square foot also showed a 16.1-percent drop compared to 2021, contrasting it to the 2020 figure it showed a 51.8 percent improvement.
Extra Space Storage was among the most active buyers throughout Denver. The REIT purchased four properties encompassing 279,254 square feet in May, among other acquisitions. Baron Properties sold the assets for a total of $55.3 million. The William Warren Group also picked up three Denver facilities totaling 141,052 square feet, as part of a $588 million multi-state purchase from World Class Capital Group.
6. Washington, D.C.
Transaction volume in Washington, D.C. reached $359 million in 2022. Investor activity picked up last year, outpacing 2021 by 7.1 percent. It was also markedly higher than the $91.1 million recorded in 2020. Investors traded more than 1.7 million square feet of space, less than the 1.9 million square feet traded in 2021, but an improvement over the 784,150 square feet sold in 2020. The average price per square foot also increased to $266.9, up from the $188.2 average of 2021 and the $155.8 average of 2020.
SROA Capital’s acquisition of an 81,255-square-foot storage in Alexandria, Va., achieved the highest price per square foot in Washington, D.C. Boundary Cos. received $29.5 million for the property, amounting to roughly $363 per square foot.
Seattle saw more than $355.2 million in completed self storage transactions in 2022. This represented a 21.7 percent increase over the 2021 transaction volume and substantially greater than the $98.9 million, that traded in 2020. Overall, 25 facilities changed hands across the metro totaling roughly 1.6 million square feet, dwon from the 1.7 million square feet that sold in 2021, but almost twice as much as the inventory traded in 2020. As with many other markets on the list, Seattle also saw an increase in price per square foot. In 2022 the average grew to $226.4, while in 2021 it was $185.7.
InSite was one of the top buyers in Seattle. The company began the year with the acquisition of a 31,250-square-foot property in Seattle. InSite paid $7.8 million for the properties amounting to an average of $249.1 per square foot. Harrison Street Real Estate Capital was also active within the market. In July the company purchased five properties, the 129,144-square-foot facility in Lynnwood, Wash., fetched the highest price $37.6 million.
More than 2.4 million square feet of storage space was sold in 2022 across Tampa, for approximately $330.5 million. Self storage transactions contracted somewhat, as completed deals in 2021 totaled $392.6 million, meanwhile, it represented an improvement over the 2020 figures amounting to $142.9 million. Altogether, 40 facilities traded in 2022, totaling more than 2.4 million square feet. The average price per square foot amounted to $145.8, up 2.6 percent from the average in the previous year and a considerable improvement over the $95.8 average of 2020.
LifeStorage paid $10.5 million to purchase a self storage totaling 57,300 in Spring Hill, Fla. SAFStor’s disposition of a 108,948-square-foot property in St. Petersburg, Fla., closed the list of 2022 transactions within Tampa. NexPoint Group acquired the 2019-built facility. The sale was part of a 29-property portfolio transaction across 14 states.
9. Los Angeles
Investors closed $293.1 million in storage deals throughout 2022, 55.7 percent higher than the $188.2 million recorded in 2020, and nearly five times higher than the $60.8 million that traded in 2020. A total of 21 properties traded encompassing nearly 1.9 million square feet of space. The transaction volume translated to an average price per unit of $284.8, higher than the $219.1 average of 2021 and far greater than the $147.54 average of 2020.
One of those properties that traded for a higher price per square foot than the market average, was Chicago Capital Funds' $7.3 million acquisition of a 23,537-square-foot Simi Valley asset. The property includes both traditional and RV and boat storage space.
Self storage transactions throughout the Baltimore market amounted to $280.6 million in 2022. Investor activity increased compared to 2021, when closed deals totaled nearly $161.8 million. In 2020 the transaction activity added up to just $38.5 million. Approximately 2.3 million square feet of storage space, nearly double the 1.2 million square feet of space sold in 2021. The average price per square foot also showed growth reaching $159.9, up from $153.2 seen in 2021 and the $84.5 average of 2020.
In June, Extra Space Storage paid a total of $65.5 million for a two-property portfolio. Premier Storage Investors sold the 107,587-square-foot storage in Timonium, Md., along with the 119,520-square-foot facility in Windsor Mill, Md.