Top 10 Self Storage Markets for Deliveries in 2023

Developers completed nearly 51.2 million square feet of self storage projects during the previous year nationwide, according to Yardi Matrix data. Overall construction activity was on the upswing, up 16.9 percent from 2022 when 43.8 million square feet were delivered.

The table below showcases the leading 10 U.S. markets for self storage deliveries, based on total rentable square footage completed in 2023. The highlighted markets made up 28.8 percent of the total deliveries in the past year while also retaining an ample construction output—197 projects under construction totaling 15.5 million square feet.

1.      Atlanta

Atlanta took the top position with 2.1 million rentable square feet of storage space delivered in 2023. This marked a significant increase in completions—64.4 percent compared to 2022 and 33.8 percent compared to 2021. The 2023 deliveries represented 4.2 percent of Atlanta’s inventory.

Construction starts were also on an upward trend during the past three years. Developers kicked off construction on 1.8 million rentable square feet of space in 2023. Overall, 2.1 million square feet was underway as of January 2024. Yardi Matrix expects that nearly 2 million square feet of space will come online in 2024, followed by an additional 1.3 million square feet in 2025.

Among the 28 storages delivered last year, Childress Klein’s 112,263-square-foot property in Fayetteville, Ga., was one of the largest. The developer financed the build with an $11.1 million loan financed by Regions Bank. Completions also included adaptive reuse projects as well. Stein Investment Group converted a theatre into a 57,630-square-foot storage facility in Marietta, Ga. Cornerstone Commercial Mortgages facilitated the development of Space Shop Self Storage with the help of a $10.5 million loan.

2.      Dallas-Fort Worth

Nearly 2 million rentable square feet of storage was delivered last year, accounting for 3.9 percent of Dallas-Fort Worth’s storage stock. Focusing on recent completions, the Metroplex’s 2023 figures surpassed 2022 numbers, which totaled 1.3 million square feet, but fell short of the 2.8 million square feet delivered in 2021.

Developers kicked off construction on 2 million square feet of storage space. The Metroplex’s pipeline included 2.2 million square feet underway. Based on a recent Yardi Matrix forecast DFW’s inventory will grow by 1.8 million square feet in 2024 followed by 1.9 million square feet in 2025.

Metroplex developers completed 25 storage facilities in 2023. All Storage’s 168,843-square-foot property of the same name in Fort Worth, Texas, was among the largest completed. Prosperity Bank provided a construction loan for the four-building facility, that includes both traditional storage space as well as RV and boat storage.

3.      Philadelphia

Greater Philadelphia’s self storage footprint increased by 1.8 million rentable square feet in 2023. The expansion amounted to 3.6 percent of the metro’s existing stock. Last year’s completions were on pace with the 2021 numbers, when 2 million square feet came online. However, the 2023 numbers were a substantial improvement compared to 2022, when just 589,082 square feet of space was delivered.

Construction starts ramped up in 2023, compared to the previous two years. Philadelphia developers kicked off construction on 1.6 million square feet of space in 2023. With nearly 1.8 million square feet of storage space under construction, as of January 2024, construction maintained momentum. Self storage inventory is expected to grow by 1.3 million square feet in 2024 with an additional 1.1 million square feet coming in 2025.

Among new builds, conversions were also present in Philadelphia as well. InSite transformed The Thirteenth & Fifteenth Street Passenger Railway Co.’s depot and car house buildings into a 120,260-square-foot storage facility. Valley National Bank provided a $24.9 million construction loan for the adaptive reuse project. InSite also completed two other SecureSpace Self Storages in the metro, a 98,375-square-foot property in Langhorne, Pa., and a 78,097-square-foot facility in Blue Bell, Pa.

4.      Chicago

Chicago gained 1.7 million rentable square feet of new storage stock in 2023, amounting to 3.3 percent of existing inventory. Developers ramped up deliveries, as in 2021 just 374,079 square feet were delivered followed by 1 million square feet completed in 2022.

While not as dramatic as previous entries, construction activity remained steady in recent years. In 2023, developers started development on 510,588 square feet of storage. As of January 2024, 10 projects were underway across the metro encompassing 767,782 square feet. Development activity will continue with 641,897 square feet of storage anticipated to come online in 2024, followed by 712,757 square feet in 2025.

Among the 22 facilities delivered in 2023, Atwater Group’s 165,174-square-foot Extra Space Storage in Joliet, Ill., was one of the largest. The REIT also served as a third-party self storage management company for five other recently completed facilities across the metro.

5.      Houston

During 2023, more than 1.3 million rentable square feet of storage came online in Greater Houston. This marked a 116.6 percent growth compared to 2022 and a 12.7 percent increase compared to 2021. The new space added in 2023 amounted to 2.6 percent of the metro’s existing inventory.

Construction starts also ramped up recently. There were no new projects in 2021 and storage development was modest in 2022 with only five projects totaling 418,252 square feet breaking ground. However, developers kicked off construction on nearly 1.8 million square feet of space in 2023. As of January, there were 2.2 million square feet of storage underway throughout Houston. According to a recent forecast, the metro’s footprint is expected to grow by nearly 1.3 million square feet in 2024 and more than 1.2 million square feet in 2025.

Houston developers completed 18 properties across the metro. Keeley Properties’ 178,600-square-foot Best Box Storage in New Caney, Texas, was one of the largest recently delivered. The developer also had three projects totaling some 270,000 square feet under construction across Houston.

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6.      Los Angeles

Metro Los Angeles added more than 1.2 million rentable square feet of storage space in 2023, amounting to 2.5 percent of the metro’s existing stock. Developers have heightened their efforts in recent years. In 2021 there were no construction starts succeeded by 11 projects encompassing 924,026 breaking ground in 2022.

Developers kicked off construction on 14 facilities totaling 1.3 million square feet in 2023. Los Angeles’ development pipeline included 2.2 million square feet under construction as of January. The metro is expected to gain 1.5 million square feet of storage space by the end of the year and another 1 million square feet in 2025.

Some of the largest facilities that came online in Los Angeles were the 123,066-square-foot Public Storage in North Hollywood, Calif., and Johnson Development Associates’ 125,372-square-foot Extra Space Storage in Los Angeles.

7.      Phoenix

Nearly 1.2 million rentable square feet of storage came online across Phoenix in 2023. The new space added up to 2.4 percent of the metro’s existing inventory. Construction activity slowed compared to 2022 when almost 1.8 million square feet came online and also fell short of the 1.5 million square feet delivered in 2021.

There were no new projects in 2021 and development remained minimal in 2022, when four projects totaling 199,850 square feet broke ground. In 2023, developers started on 17 facilities totaling more than 1.3 million square feet. As of January, 22 projects encompassing 1.5 million square feet were underway. Developers show no signs of stopping, as Greater Phoenix’s self storage footprint is expected to grow by 1.5 million square feet in 2024 and another 1.6 million square feet in 2025.

Amerco Real Estate completed two storage facilities across Phoenix in 2023. A three-story property totaling 74,335 square feet came online in Phoenix and an 87,865-square-foot U-Haul Moving & Storage took shape in Apache Junction, Ariz. The REIT also had four projects under construction in Greater Phoenix and a few in the planning stages as well.

8.      Las Vegas

Las Vegas developers completed approximately 1.2 million rentable square feet of self storage during the previous year. The new space amounted to 2.3 percent of the metro’s stock. Completions were up 66 percent compared to 2022 and 26.6 percent compared to 2021.

Last year developers started construction on eight projects totaling 737,394 square feet. Developers had 810,444 square feet under construction as of January. The Las Vegas pipeline is expected to hold steady with 518,312 square feet delivered in 2024 and 680,168 square feet in 2025.

DXD. Capital was among the more active developers in Las Vegas in the past year. The company completed a 90,375-square-foot as well as a 105,873-square-foot facility. DXD. Capital also had an 83,779-square-foot project underway. All three are managed by Public Storage.

9.      New York

In 2023, New York added more than 1.1 million rentable square feet to the metro’s self storage footprint. The new deliveries amounted to 2.2 percent of New York’s existing inventory. Completions steadily increased contrasted with the prior two years, up 15 percent compared to 2022 and up 21.8 percent compared to 2021.

As of January 2024, seven developments encompassing 817,442 square feet were under construction. Based on a recent forecast by Yardi Matrix, New York’s self storage inventory is expected to increase by 539,885 square feet in 2024 and by 599,007 square feet in 2025.

Among the boroughs, Queens had the most 2023 completions. Storage Deluxe added three new CubeSmart Self Storages to its portfolio and Safeguard Self Storage delivered the largest facility. The five-story self storage is within an opportunity zone and offers 222,823 rentable square feet.

10. Boston

Boston gained approximately 1.1 million rentable square feet of new storage space in 2023. The new deliveries amounted to 2.2 percent of Boston’s stock. Completions saw a steady rise here as well, marking a 65 percent and a 63.3 percent increase compared to 2022 and 2021, respectively.

Construction activity considerably increased in the past year, as developers kicked off construction on 13 projects totaling 736,980 square feet. As of January this year, Boston’s development pipeline included 17 projects totaling 1.1 million square feet under construction. The metro is expected to gain 736,137 square feet of storage space in 2024 and 914,839 square feet in 2025.

GFI Partners’ 67,725-square-foot facility in North Andover, Mass., came online in the first quarter of 2023. The developer financed the construction of North Andover Self Storage with a $9.3 million loan funded by The Provident Bank.