DALLAS—Still regarded as a niche category despite the double-digit annual increases in funds from operations by some of its leading REITs, self-storage enjoyed a banner year in 2017 and is poised for more of the same in 2018. A metric that's both a measure of the sector's strength and cause for concern in some markets is construction, which reached a new high in the first eight months of '17.
Citing Census Bureau data, Inside Self-Storage magazine recently reported that more than $2.27 billion was spent on new construction of self-storage facilities nationwide through August 31, the highest amount on record. That eight-month tally was more than the $1.9 billion spent in all of 2016, representing an annual increase of nearly 90%.
Nationally, approximately 900 facilities were built last year. That's half again as many as the 600 projects that were delivered the year prior.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
