National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Self-Storage Development Boom Shifts to Mid-Sized Urban Markets
Although self-storage development over the past decade has occurred mainly in the suburbs of large, fast-growing metro areas, the balance is shifting toward urban settings in mid-sized metro areas, Yardi’s StorageCafe reported. Among the 100 largest metro areas, 42 have seen 50% or more of their self-storage development over the past 10 years inside city limits.
The firm cited Las Vegas, San Antonio and Cape Coral-Fort Myers, FL among the leading metros for urban self-storage construction. In Sun Belt cities, “rapid in-migration has delivered the renter-heavy, apartment-dense urban population that makes urban self-storage not just viable, but essential,” according to StorageCafe.
“Storage is a proximity business,” said Victor Maghear, consumer trends and market analyst at StorageCafe. “Customers want convenient access, and that makes urban sites attractive even when development costs are higher. What’s interesting is how differently that opportunity plays out across markets — some are still expanding outward, while others are putting more of their next projects inside city boundaries.”
- ◦Development
