Top 10 Markets for Self Storage Transactions (Oct. 2023)
More than 40 percent of the sector’s deals were completed in these metro areas, Yardi Matrix data shows.
Despite the sector’s resiliency, economic uncertainty dampened investor activity in self storage. The transaction volume in the first 10 months of 2023 totaled more than $2.2 billion nationwide, a marked drop compared to the $8.4 billion during the same period in 2022. Nationally, nearly 24.7 million rentable square feet of storage space traded, bringing the average price per square foot to $144, which also fell short of the $182.4 average of 2022.
The table below highlights the top 10 self storage markets with the highest overall sales volume year-to-date through October, based on Yardi Matrix data. Overall, the metros on the list accounted for 40.4 percent of self storage transactions closed across the nation.
1. New York
New York continues to top our transaction-focused lists, the metro nabbed the topmost position with nearly $159 million in self storage transactions closed year-to-date through October. The transaction volume was not as elevated as during the same period in 2022, when more than $507 million traded, but was up 123 percent compared to the same interval in 2021. Overall, six facilities totaling 535,183 rentable square feet of storage space traded within New York. The 2023 sales brought the average price per square foot to $296.8, lower than the $542.1 average of 2022 as well as the $418.8 average of 2021.
Safeguard Self Storage’s acquisition of a 222,823-rentable-square-foot property in South Ozone Park, was among the priciest across the metro. Triangle Equities received $57.1 million for the five-story property completed in 2023.
2. White Plains, N.Y.
The recently acquired SecureSpace Self Storage in Elmsford, N.Y. Image courtesy of Yardi Matrix
White Plains saw $110 million in completed deals during the ten months of 2023, marking a 26.2 percent increase over the 2022 numbers and a remarkable increase over the 2021 figures, which amounted to $44.5 million. Investors traded six properties across White Plains. The facilities totaling 318,878 rentable square feet generated an average price per square foot of $372.4, well above the $269.6 average of 2022 and the $232.2 average of 2021.
Notable transactions included the sale of six-story storage totaling 116,519 rentable square feet in Elmsford, N.Y. InSite purchased the recently completed property from Ardent for $42 million. KKR facilitated the transaction with a $33.7 million acquisition loan.
3. Tampa
Transaction activity in the Tampa metro area totaled about $97 million year-to-date through October. This marked a 67 percent decrease compared with the 2022 figures for the same period and a noticeable decrease contrasted with $165.4 million in sales completed in the same interval of 2021. The average price per square foot grew to $184.9, a small rise over the 2022 average of $177.5 and a 22 percent increase over the 2021 average. In total, 11 properties encompassing 525,470 rentable square feet of storage space had traded.
Merit Hill Capital was the most active buyer throughout metro Tampa, as the company acquired five self storage properties year-to-date through October. Watchman Properties the 25,222-rentable-sqaure-foot in Winter Haven, Fla., to Merit Hill Capital for $2.7 million.
4. Phoenix
During the first ten months of the year, investors completed $95 million in self storage transactions throughout the Phoenix metro. The transaction volume was considerably beneath the 2022 numbers when sales amounted to more than $443 million and also fell well below the $396 million traded in 2021. Overall, seven facilities totaling 518,997 rentable square feet traded across the metro. The average price per square foot settled at $207.1, below the $252.5 average of 2022, but was 11 percent higher than the 2021 average.
Buchanan Street Partners purchased two storages for a combined $41 million from Garrett Development Corp. The buyer financed the purchase of the US Storage Centers totaling 81,600 rentable square feet in Mesa, Ariz., and the US Storage Centers totaling 115,241 rentable square feet in Cave Creek, Ariz., with loans funded by East West Bank.
5. Atlanta
The acquisition of Extra Space Storage in Jonesboro, Ga. was one of the earliest transaction in Atlanta. Image courtesy of Yardi Matrix
Investors completed around $92 million in self storage transactions in Atlanta year-to-date through October. The sales volume marked a substantial drop compared to the same period in 2022, when acquisitions amounted to more than $343.3 million and well below the nearly $219 million traded in 2021. In total, investors sold 14 properties encompassing 788,895 rentable square feet across Atlanta, bringing the average price per square foot to $164.5. The figure was below the $199.1 average of 2022 but 33 percent higher than the 2021 average.
One of the earliest transactions of the year across the Atlanta metro was the acquisition of an Extra Space Storage totaling 76,185 rentable square feet in Jonesboro, Ga. Adevco sold the 2021-built property for $17.9 million to Extra Space Storage.
6. Sarasota-Cape Coral, Fla.
By the end of October, the total amount of sales completed across the Sarasota-Cape Coral metro had reached $83 million. Meanwhile, the transaction volume in the same period of last year surpassed $121 million and reached more than $155 million in 2021. Overall, eight self storage facilities totaling 572,564 square feet traded in 2023. This brought the average price per square foot to $145.6, below the $178.9 average price of 2022 and a 14.7 percent decrease compared to the 2021 average.
The Simpson Organization was one of the more active investors across the Sarasota-Cape Coral metro. The company sold two properties in April and acquired a 45,144-rentable-square-foot one in late June. York RE Capital Partners paid a combined $23.3 million for the two facilities located in Venice, Fla., and Naples, Fla., respectively.
7. San Diego
Self storage transactions contracted, as San Diego saw approximately $82 million in completed self storage transactions in the first ten months of the year. This marked a 17.8 percent drop compared to the same period in 2022 and fell below the 2021 figure of $128.1 million. Altogether, 15 properties encompassing 977,386 square feet were sold in 2023, the largest footprint traded among the ten metros. At $147.8, the average price per square foot was significantly below the $282.2 average of 2022 and substantially below the $360.4 average of 2021.
Prime Group Holdings was the most active buyer throughout the San Diego metro. Among the purchases, the company acquired a 94,999-rentable-square-foot property in San Diego from Parma Management. The property traded for $13.8 million.
8. Central Valley, Calif.
A 39,324-rentable-square-foot property in Ripon, Calif., was one of the storages acquired by The William Warren Group. Image courtesy of Yardi Matrix
Central Valley investors closed roughly $68 million in self storage transactions year-to-date through October. Transaction activity moderated, as deals in the same period in 2022 amounted to $114.8 million, but it represented an improvement over the 2021 numbers amounting to merely $48.7 million. Overall, 10 self storage properties totaling 689,434 rentable square feet sold in 2023, bringing the average price per square foot to $119.5. The figure was well below the $177.6 average of 2022, but nearly the exact amount of the 2021 average of $119.4.
The William Warren Group kicked off the year with the acquisition of four properties across the Central Valley metro. Among the four, the 77,550-rentable-square-foot facility in Modesto, Calif., was the priciest. The William Warren Group paid $12 million for the single-story property built in 1985.
9. Miami
Transaction volume in Miami totaled approximately $65 million year-to-date through October. Investor activity fell plunged notably compared to the same period in 2022, when sales totaled $345.3, it also fell well below the $251.1 million traded in 2021. In total, four properties encompassing 314,929 rentable square feet were sold. The average price per square foot settled at $205.3, a 12 percent drop compared to the 2022 average, but marked a slight improvement over the $201.2 average of 2021.
Notable transactions included the sale of A Plus Mini Storage totaling 144,724 rentable square feet in Miami. ROVR Development paid $23.5 million for the property, which has both traditional and RV and boat storage space.
10. Oklahoma City
Self storage transactions across Oklahoma City amounted to $51 million year-to-date as of October. Investor activity cooled considerably compared to the same period in 2022, when closed deals totaled $109.8 million, and dropped compared to 2021 when sales added up to $70.9 million. Overall, 11 facilities totaling 626,051 rentable square feet were sold in 2023. The average price per square foot dropped to $81.7, well below the $105.7 average of 2022, but marked a 34.6 percent improvement over the $60.7 average of 2021.
Amerco Real Estate acquired the 74,430-rentable-square-foot storage in Edmond, Okla., for $10.8 million and the 77,985-rentable-square-foot storage in Yukon, Okla, for $11.7 million. The Rosewood Corp. sold both facilities, which were rebranded U-Haul Moving & Storage.
