A quarterly review of self-storage transaction activity across the U.S., highlighting key trends, regional insights, and investment shifts. This report is based on our self-storage investment trends and transaction volume analysis for Q4 2024.
February 19, 2025
Q4 2024 Market Overview: Trends & Investment Highlights
Amid shifting market dynamics and heightened economic uncertainty, self-storage investment remained a bright spot in Q4 2024, with buyers actively pursuing opportunities in key markets. StorTrack’s analysis uncovered 94 self-storage transactions closing last quarter1, totaling over $530 million in sales and spanning 4.5 million net rentable square feet (NRSF) 2. While some regions saw price adjustments, investor demand held firm, reaffirming self-storage as one of the most resilient and sought-after asset classes for long-term growth.
Transaction Activity by Store Type: Who’s Buying?
Multi Operators led transaction activity, accounting for over half of all deals and $265 million in acquisitions. Despite completing half as many transactions, REITs nearly matched this volume with $220 million, focusing on premium assets in high-cost markets like Dallas-Fort Worth. REITs were most active in the Southeast and Southwest, while Multi Operators prioritized value-driven acquisitions in the Southeast and Midwest.
Single Operators completed 21 deals – nearly as many as REITs – but at a significantly lower total value of $49 million (just 25% of REIT volume). These acquisitions were concentrated in Midwest markets like Iowa City and Omaha-Council Bluffs, where independent facilities continue to attract local investors seeking lower-cost entry points into the sector.
Transactions By Region
Regional Investment Trends: Where Deals Are Happening
Transaction activity was highest in the Southeast, with 31 properties selling for $183 million at an average of $112.65 per NRSF. Strong deal volume in the Atlanta-Sandy Springs, Georgia, and Fayetteville-Springdale, Arkansas metropolitan areas highlight investor confidence in high-growth markets with strong population inflows. Meanwhile, continued interest in Tennessee and North Carolina’s secondary markets suggests that investors are prioritizing affordability and long-term growth potential over immediate yield, signaling opportunities for strategic acquisitions in emerging submarkets.
The Midwest ranked second in total transaction volume, with 26 properties sold for nearly $83 million, covering over 1 million NRSF. While affordability remains a key market driver, increasing supply – particularly in Minneapolis-St. Paul, where levels have reached 8.6 SF per capita – signals potential saturation in certain areas.
Mapping Self Storage Deals: Who’s Buying Where
High-value assets dominated transaction activity in the Mid-Atlantic, where $108 million in sales came from just 10 properties. With an average price of $283.76 per NRSF – more than double the Midwest’s $79 per NRSF – investors in this region are prioritizing premium facilities in dense urban markets despite recent rent declines. Rather than relying on immediate rental growth, buyers are betting on long-term demand fundamentals, including strong population density and limited new supply. This pricing disparity highlights a bifurcation in investment strategies, with the Midwest appealing to value-driven buyers while the Mid-Atlantic attracts investors willing to pay a premium for stability and long-term market resilience.
Key Markets to Watch: High Supply, Steady Demand
Dallas-Fort Worth saw six properties sell for over $30 million, making it one of the most active self-storage transaction markets. With supply already at 13 SF per capita and 4 million square feet of new development in progress, prices declined 9.5% YoY. However, steady transaction activity suggests investors remain confident in the region’s long-term fundamentals, driven by strong population growth and economic expansion.
Meanwhile, Minneapolis-St. Paul continues to attract investors, even as supply pressures increase. With 8.6 SF per capita and another 400,000 NRSF under development, the market remains in expansion mode. Prices declined 3.9% YoY – higher than the national average of 2.5% – yet sustained transaction volume indicates that investors still see long-term value in the region, even with potential oversupply concerns.
Final Takeaways: Investment Outlook for 2025
Self-storage investment activity remained strong in late 2024, but evolving economic conditions continue to shape the market. Hopes for Fed rate cuts in 2025 have been pushed back due to a stronger-than-expected January jobs report and persistent inflation concerns, delaying expectations for lower borrowing costs and potentially impacting deal flow for highly leveraged buyers.
Investor confidence remains high particularly in high-supply markets where transactions continue at a steady pace. REITs and Multi Operators are driving acquisitions, reinforcing self-storage’s appeal as a resilient asset class. While elevated borrowing costs may temper some investment activity, strong long-term fundamentals – stable demand, market resilience, and favorable supply-demand dynamics – continue to position self-storage as an attractive investment opportunity.
Footnotes
- StorTrack’s analysis utilizes transactions that closed through public records. However, there are times when the recording of transactions in publicly available records are delayed and would therefore not be captured in our analysis.
- Price per NRSF provides a broad market benchmark but should not be used in isolation. Accurate valuations require considering market conditions, property characteristics, and financial performance, as this metric does not account for factors like age, condition, location, or unique asset attributes.
Stay tuned to StorTrack for more updates on industry trends and market insights. As the leading provider of self-storage market data and analytics, we help operators and investors make informed, data-driven decisions.
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