The self storage market, typically a haven for savvy investors, remained high in 2022. More than 73.4 million square feet of storage space traded last year, for a combined total of $10 billion.
That’s according to our most recent industry sales report in which we wanted to gauge the state of the sales market and sought to identify the top self storage markets based on investment volume in 2022.
Our data shows that:
- The focus was on under-served markets: New York City, NY – still least supplied among largest urban hubs, featuring only 2.4 square footage per capita compared to 7.3 square feet per capita on a national level – dominated self storage sales again. New York City’s 2022 sale volumes totaled over half a billion dollars across the five boroughs. Except for Ocala, FL, and Houston, TX, all the cities in the top ten markets for self storage deals have limited supply.
- Self storage investment exposure by state: The greatest sales volumes were registered in New York, California and Florida. Texas traded the most storage space, more than 16M square feet in 257 facilities.
- Acquisition activity favored the large operators: REITs led 2022 self storage investor activity with Extra Space Storage out in front with acquisitions to the tune of $1.2 billion.
- Street rate performance: Although storage street rates shot up during 2022, with the national rate for a non-climate-controlled 10’x10’ unit exceeding $130, per Yardi Matrix data, they have been easing and are currently at an average of $127.
- Compared to record-setting 2021, the overall sales volumes in 2022 represent a 19 percent drop-off.
Despite tighter financing conditions and stabilizing demand, growth opportunities should be plentiful over the next several years for self storage as the sector has demonstrated consistently strong performance over various market cycles.
