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Multi-Housing News Ranks Top 5 Markets for Self-Storage Investment Activity in 2020

Multi-Housing News (MHN), a media brand specializing in residential real estate news and analysis, has published a list of the top five U.S. self-storage markets based on investment volume in 2020. The list was compiled using data from Yardi Matrix, the self-storage data-services platform offered by management-software provider Yardi Systems Inc. The recognized markets, in order of rank, were New York City (NYC); Atlanta; Tampa, Fla.; San Diego and Phoenix. Together, those metropolitan areas accounted for more than 25 percent of total activity.

More than $3.6 billion in self-storage transactions closed nationwide during the year, which is a slight decline from the nearly $4 billion in deals logged in 2019. Though overall investment activity was down year over year, some markets experienced pent-up demand as a result of the coronavirus pandemic and drew increased interest from investors, MHN reported.

NYC deals topped more than $615 million last year, a 34 percent increase from 2019. In all, 23 self-storage properties comprising more than 1.8 million square feet were sold. The average price per square foot was $328.90, up from $247.70 the year prior. The most notable acquisition in the market, according to MHN, was by self-storage real estate investment trust CubeSmart, which acquired an eight-property portfolio from Storage Deluxe for $540 million.

Atlanta ranked second with 19 facilities selling for $147.9 million. Those properties comprised more than 1.6 million square feet. Both metrics were substantially higher than in 2019, when properties comprising 933,000 square feet sold for about $95 million. CubeSmart also made the biggest investment in the Atlanta area last year, acquiring four properties comprising 379,662 square feet, MHN reported.

Tampa rounded out the top three, with $137.9 million in trading volume. Those deals reflect 16 properties comprising 1.28 million square feet. Overall, investment activity in the metro area was down from 2019, when 23 facilities sold for nearly $159 million.

San Diego ranked No. 4 on the list with $128.8 million in self-storage sales, though the 698,508 square feet reflected in those deals trailed fifth-place Phoenix, which saw more than 1.17 million square feet change hands. Trading volume in Phoenix was $126.4 million.

MHN is an integrated resource for executives and companies that own, manage, invest in or develop multi-housing real estate. Its coverage includes news, information and analysis on several types of property, including affordable housing, luxury and manufactured communities, senior and student housing, and self-storage. MHN is an affiliate of Commercial Property Executive, a media brand specializing in commercial real estate news and analysis. Both are owned by Yardi Systems.

Source:
Multi-Housing News, Top 5 Self Storage Markets for Transaction Activity

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