Last fall, Blackstone acquired Simply Self Storage – with eight million square feet of rental space – for $ 1.2 billion, adding to the $ 300 million already invested in the industry. And in April, Public Storage completed its acquisition of ezStorage for $ 1.8 billion, adding 48 properties with 4.2 million net rentable square feet.
With investor interest and consumer demand high, Edison Properties, owner of Manhattan Mini Storage, is reportedly considering selling its division, which has 18 locations and 3.1 million square feet, for an estimated $ 3 billion. dollars, or nearly $ 1,000 per square. foot, Bloomberg News reported.
Edison declined to discuss the sale, but the price tag is not surprising, said Mr. Sakwa of Evercore, given the generally high cost of real estate in New York City.
Growth is primarily in general units, but storage for extras like RVs and boats, as well as cold storage, has also increased.
Despite peak demand and sparkling acquisition prices, “not all is rosy under the hood,” said Stephen Clark II of the Clark Investment Group in Wichita, Kan., Which specializes in self-storage among d ‘other real estate categories. Rental statistics that show a high occupancy rate can be misleading, he said, as they include a number of long-term tenants whose rates are below the market.
And experts don’t know how postpandemic behavior will affect the industry. For example, what happens when storage tenants move out of their parents’ home or don’t need to use their second bedroom as a makeshift office?
But with home prices escalating nationwide, so-called starter homes have become more expensive and some new owners are opting for smaller spaces. That, Mr Morales said, could translate into a constant demand for storage.