Top 10 Markets for Self Storage Transactions in 2023

The overall sales slowdown that has manifested across the real estate sector hasn’t overlooked self storage. Sales were down 64 percent in 2023 compared to the 2022 deal volume. The total sales volume across the U.S. reached $3.6 billion, significantly below both the nearly $10 billion of 2022 and the $13.8 billion of 2021. In terms of space sold, more than 28 million square feet traded with an average price per square foot of $127.8. The below table highlights the top 10 markets for self storage transactions in 2023, based on Yardi Matrix data. These top markets made up almost 40 of all nationwide storage sales.

New York City

New York landed in the top spot once again with more than $281 million in completed deals in 2023. The transaction volume accounted for 7.8 percent of nationwide volume, even though transactions totals contracted 44.5 percent year-over-year. Altogether, eight storage facilities totaling 945,424 square feet traded across New York City. The past year’s average price per square foot settled at $298, 28.7 percent below the 2022 average and 67.6 percent lower than the 2021 figure.  

Among the recently completed transactions, Blumenfeld Development Group’s acquisition of a 102,056-square-foot property in Woodside, N.Y., recorded the highest price per square foot. The Life Storage fetched $50.6 million, or $496 per square foot. Blumenfeld also purchased a 158,669-square-foot self storage in Flushing, N.Y., for $72 million or $454 per square foot.

White Plains, N.Y.

Transaction volume in White Plains added up to more than $209 million in 2023. The figure marked a 148.4 percent growth compared to 2022 and was the sole metro on the list where transaction volume increased year-over-year. Overall, 12 facilities encompassing 990,326 square feet traded across the market. This brought the price per square foot to $211.4, a slight improvement over the $210.7 of 2022.

In April, Life Storage acquired the 193,000-square-foot storage in Yonkers, N.Y., for $60.3 million or $312.4 per square foot. This transaction was the highest single asset sale in White Plains. The 2012-built property is now under the Extra Space Storage umbrella following the recent merger of the two storage companies.

Phoenix

During the previous year, the total amount of sales completed across Greater Phoenix came to nearly $189 million. The transaction volume marked a 58.2 percent drop year-over-year. Overall, investors traded 1.2 million square feet of storage space across 12 facilities. The average price per square foot settled at $163.1, 30 percent above the $212.1 average of 2022.

Public Storage was one of the most active buyers in Greater Phoenix. The REIT picked up four properties from Barker Pacific Group for a combined $78.5 million. Among the four, the 104,000-square-foot Public Storage fetched the highest per-unit price of $192. Across the whole market, however, the largest per-unit price was $272, paid by National Storage Affiliates. The REIT acquired the StorAmerica Self Storage facility in Fountain Hills, Ariz., for $16.2 million.

Tampa, Fla.

Investors traded 794,831 square feet of storage in 2023 across Tampa, roughly a third of the 2.3 million square feet that sold in 2022. Sales totaled $121 million the previous year. This brought the average price per square foot to $152.8, an improvement over the $145.0 average of 2022.

Among the first transactions of 2023, Extra Space Storage acquired a 144,622-square-foot property in Lakeland, Fla., for $25.5 million. The purchase marked the highest single-asset sale price across Tampa. Prime Group Holdings acquisition of a 90,231-square-foot facility had the highest price per square foot. The buyer shelled out $11.5 million or $211.0 per square foot.

Charleston, N.C.

During the past year, Charleston saw slightly more than $118 million in self storage sales. This marked a minor decline of 10.2 percent over the $131.5 million transaction volume of 2022. The year saw the sale of nine facilities totaling 937,944 square feet. The metro’s average price per square foot clocked in at $125.9, slightly lower than the $135.7 price recorded in 2022.

Public Storage was also quite an active buyer in Charleston. The REIT picked up five self storage properties totaling nearly 500,000 square feet across the market for a combined $58 million. Baranof Holdings paid $17.3 million for a 126,835-square-foot property in Mount Pleasant, S.C. This transaction became the most expensive single-asset sale in Charleston during 2023.

Atlanta

In 2023, metro Atlanta recorded approximately $114 million in self storage sales, a steep 73.7 percent drop compared to 2022. The average price per square foot also decreased, with the figure settling at $142.5, a 19.4 percent slide year-over-year. Overall, 14 self storage properties totaling 796,950 square feet traded last year.

Wentworth Property Co. acquired a three-property portfolio for $43.6 million or $180.0 per square foot. The highest price per square foot recorded in the metro was registered in another sale: Belrose Asset Management purchased a 13,000-square-foot storage facility in Douglasville, Ga., for $2.9 million or $223 per square foot.

Miami

Transaction volume in Greater Miami reached $112 million in 2023. Investor activity weakened on an annual basis, falling 73 percent year-over-year. Some 747,752 square feet of storage space traded across eight facilities last year. Miami’s average price per square foot dropped to $150.0, an 18.4 percent fall compared to the $183.9 average of 2022.

Public Storage’s acquisition of a 45,491-square-foot storage in North Miami, Fla., attained the highest price per square foot in Greater Miami. The REIT paid $10.7 million for the four-building property, amounting to $234.0 per square foot.

Philadelphia

Investors closed $101 million in self storage deals in 2023. This marked a nearly 55 percent fall compared to 2022, when sales totaled $224 million. Overall, 13 self storage properties encompassing 879,092 square feet traded. The metro’s average price per square foot came to $114.7, below the $156.8 average of 2022.

InSite was among the most active buyers in the Philadelphia metro in 2023. The company spent a combined $36 million for a 124,830-square-foot SecureSpace Self Storage in Langhorne, Pa., and a 101,913-square-foot facility in Blue Bell, Pa.

Sarasota-Cape Coral, Fla.

Self storage transactions across the Sarasota-Cape Coral metro totaled roughly $93 million in 2023. The sales volume dropped 40.3 percent on an annual basis, as 2022’s transactions amounted to $156 million. The price per square foot came to $115.8, below the $160.6 of 2022. Similarly to Philadelphia, 13 self storages traded across the metro, with total transacted square footage reaching 801,401.

Reliant Real Estate Management's acquisition of Midgard Self Storage in Bradenton, Fla., achieved the highest price per square foot in the metro. The company paid $7.5 million or roughly $176 per square foot for the 42,576-square-foot asset.

San Diego

In 2023, the self storage sales in the San Diego metro amounted to $82 million. In a manner akin to most of the markets on the list the transaction volume dropped year-over-year in San Diego as well, a 41 percent fall compared to the $140 million of 2022. The 603,417 square feet of storage space that traded brought the average price per square foot to $136.0. The figure was well below the $252.7 average of 2022.

CBRE Global Investors and Prime Group Holdings were the most active buyers in San Diego. However, The Rosewood Corp. completed the highest single-asset sale in the metro, which at the same time also marked the largest price per square foot. The company paid $30.9 million or $390 per square foot for the 79,157-square-foot facility in Vista, Calif.