flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

A steady increase in new self-storage space is meeting growing need in large metros and their suburbs

Industrial Facility

A steady increase in new self-storage space is meeting growing need in large metros and their suburbs

Rent Café’s study projects a 9 percent bump in the nation’s existing inventory.


By John Caulfield, Senior Editor | May 19, 2022
Image by sarla Wu from Pixabay
Image by Sarla Wu from Pixabay

The New York metropolitan area leads the nation in new self-storage unit development, nearly doubling what’s under development or construction in Los Angeles-Long Beach-Anaheim, Calif., the No. 2-ranked metro.

Over 131 million sf of new self-storage are in various stages of development or construction in the U.S., with 50 million sf scheduled for delivery in 2022, according to the market research firm Yardi Matrix, whose data from 202 metros Rent Café analyzed. The new development would add approximately 9 percent to the country’s existing stock of 1.6 billion rentable sf of self-storage space.

More than half of new self-storage development—68 million sf—is located in the most active metros that are either undersupplied with a low per-capital inventory or are growing faster than supply can keep up with demand.

Self Storage Development by Metro
(planned or under construction)

Metro                                                rentable square footage
New York-Newark-Jersey City          11,863,734
Los Angeles-Long Beach-Anaheim   6,324,477
Dallas-Ft. Worth-Arlington                 5,378,565
Phoenix-Mesa-Scottsdale                 4,629,836
Ft. Lauderdale, West Palm Beach    3,963,007
Philadelphia-Camden                       3,852,158
Atlanta-Sandy Springs-Roswell        3,541,086
Washington-Arlington-Alexandria     3,006,318
Las Vegas-Henderson-Paradise       2,698,725
Chicago-Naperville-Elgin                  2,608,456
Source: Rent Café analysis of Yardi Matrix data

Click here to see the full report, including the Top 100 metros by planned and under-construction self-storage space.

FILLING UNDERSERVED GAPS

Nationally, the benchmark for rentable storage space is 7.1 sf  per person. New York only has 2 sf per person, Los Angeles 4. Conversely Dallas-Ft. Worth and Phoenix already have 8 sf per person.

New York expects to deliver 6.2 million sf of self-storage space this year, which would be the equivalent of 17 percent of its existing stock, 72 million sf, which is double the area of Central Park.

Eighty percent of New York’s new self-storage development is located in urban areas, with the borough of Queens accounting for nearly 1.3 million sf alone. Las Vegas, on the other hand, is building 65 percent of its new self-storage space in its suburbs. Other suburban-oriented development is evident in Seattle-Tacoma-Belleview, San Diego-Carlsbad, and North Port-Sarasota, Fla., the latter of which ranks first among the metros tracked for new suburban self-storage space.

Other points of interest from this study include the following:

  • Almost 15 percent of self-storage facilities being planned or under construction in Miami will provide space for recreational vehicles.
  • Despite having a much smaller population than Dallas-Fort Worth, Phoenix is on track to catch up and eventually pass Big D in self-storage development. It has 4.6 million sf under development, 2.3 million sf of which will be delivered this year. Phoenix is one of the country’s fastest-growing metros, attracting renters and homebuyers alike.
  • 95 percent of the self-storage development in Philadelphia, and 87 percent in Washington D.C., are new projects, with modern features and amenities.
  • With the average size of an apartment in the city of Chicago being only 750 sf (the national average is 882 sf), it’s not surprising that 91 percent of the Windy City’s new self storage development is in urban areas.
  • Self-storage rents over the past 12 months have risen nationally, on average, by 6 percent to $128 per month for a 10x10-ft unit. The Los Angeles metro’s street rate for rentals is the highest, at $209. Conversely, the Houston-The Woodlands-Sugar Land metro’s average rent is $96.

Rent Café conducted this analysis of Yardi Matrix’s data. It considered 2,100 self-storage facilities planned or under construction as of March 2022. Data regarding U.S. population came from the Census Bureau.

Related Stories

Multifamily Housing | Jun 21, 2022

Two birds, one solution: Can we solve urban last-mile distribution and housing challenges at the same time?

When it comes to the development of both multifamily housing and last-mile distribution centers, particularly in metropolitan environments, each presents its own series of challenges and hurdles. One solution: single-use structures.

Industrial Facility | Jun 17, 2022

A new Innovation Center in Wyoming focuses on finding sustainable ways to use coal

The 10-acre site is part of the area’s R&D push.

Adaptive Reuse | May 18, 2022

An auto plant in Detroit to get a retread as mixed-use housing

Fisher 21 Lofts could be the largest minority-led redevelopment in the city’s history.

Industrial Facility | Apr 30, 2022

CapRock Partners taps into industrial space demand

The investment firm is committed to building 15 million sf of warehouses.

Industrial Facility | Apr 14, 2022

JLL's take on the race for industrial space

In the previous decade, the inventory of industrial space couldn’t keep up with demand that was driven by the dual surges of the coronavirus and online shopping. Vacancies declined and rents rose. JLL has just published a research report on this sector called “The Race for Industrial Space.” Mehtab Randhawa, JLL’s Americas Head of Industrial Research, shares the highlights of a new report on the industrial sector's growth.

Industrial Facility | Apr 6, 2022

Development underway for Missouri’s largest logistics park

Hunt Midwest envisions 27 buildings will be completed over the next 10 years.

Industrial Facility | Apr 1, 2022

Robust demand strains industrial space supply

JLL’s latest report finds a shift toward much larger buildings nearer urban centers, which fetch higher rents.

Sponsored | BD+C University Course | Jan 24, 2022

Design and construction of cannabis facilities

Industry experts offer advice on what it takes to design and build cannabis facilities.

Cladding and Facade Systems | Oct 26, 2021

14 projects recognized by DOE for high-performance building envelope design

The inaugural class of DOE’s Better Buildings Building Envelope Campaign includes a medical office building that uses hybrid vacuum-insulated glass and a net-zero concrete-and-timber community center.

Giants 400 | Oct 22, 2021

2021 Industrial Sector Giants: Top architecture, engineering, and construction firms in the U.S. industrial buildings sector

Ware Malcomb, Clayco, Jacobs, and Stantec top BD+C's rankings of the nation's largest industrial buildings sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.

boombox1 - default
boombox2 -
native1 -

More In Category




halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 


Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: