Self-Storage Investment Surge: Key Transactions and Trends from the Second Half of 2024

November 26, 2024

Overview

The second half of 2024 showcases vibrant activity in the self-storage sector, with StorTrack data recording approximately 110 transactions across the United States. Multi-operators and REITs each accounted for just over 40% of the total transaction volume, with investment activity heavily concentrated in the Southeast. Multi-operators were particularly active in the Midwest, completing five transactions for Storage Rentals of America facilities in Michigan and Illinois. Meanwhile, REITs focused predominantly on the Southeast, with Florida emerging as a critical market. On Florida’s west coast, three Public Storage facilities in the Crestview-Fort Walton market sold for prices ranging from $9.1 million for a 65,000-square-foot property to $15.6 million for a 59,400-square-foot facility on 13 acres in Lakeland. On the east, CubeSmart made headlines with the $26.5 million purchase of a 124,720-square-foot facility in Delray Beach.

Regional Transaction Analysis

As not all final sales prices are disclosed in transaction records, StorTrack focused its analysis on 88 transactions with recorded prices totaling over $629 million in sales. The analysis revealed distinct patterns among buyer types. REITs and Multi-operators each completed 34 transactions during the period. Still, REITs concentrated on larger properties, acquiring over 2.5 million net rentable square feet for $392.4 million, compared to Multi-operators, who transacted 1.6 million square feet for $173 million.

Transaction Breakdown by Operator Type

While Multi-operators were heavily active in the Midwest, their more significant deals—averaging over $10 million—occurred primarily in the Southeast. Notable examples include three SmartStop Self Storage transactions in South Carolina, North Carolina, and Virginia, each averaging $12 million. In Northern California, multi-operator deals ranged from $106 to $141 per square foot, peaking at an eye-catching $256 per square foot in Salinas. Located in the Monterey Bay area, Salinas ranks among the most expensive cities in the U.S., highlighting the premium associated with this market.

REITs were most active in the West and Southeast, completing nearly $300 million in transactions across these regions. In the West, a significant portion of California’s total stemmed from the record-breaking $91 million sale of the Extra Space Storage facility in Cerritos. This 260,273-square-foot property, featuring 2,460 units and 88% occupancy at the time of purchase, marks the largest single-property self-storage transaction in history, according to CBRE. StorTrack also identified over 15 REIT transactions in the Southeast, with Florida and South Carolina leading the activity.

While less active overall, Single operators made a notable impact, completing over ten transactions totaling $43 million in the Southeast. Standout deals included Washington Road Storage’s 197,262-square-foot facility in Evans, Georgia, which sold for $17.7 million, and South Andrews Storage’s 12,710-square-foot facility in Fort Lauderdale, Florida, built in 1955 and sold for $3.7 million.

The second half of 2024 painted a compelling picture of the self-storage investment landscape. From record-breaking deals in California to strategic acquisitions in the Southeast, the period highlighted the industry’s ability to adapt and thrive. REITs and Multi-operators drove competition, leveraging regional opportunities and targeting high-demand areas, while Single operators carved out niche successes. The breadth of activity underscores self-storage’s resilience and enduring appeal as an essential asset class in today’s market.

 

 

 

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