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Self-Storage Builds Reach New $ Peak

“The surge in construction of self-storage facilities across the country has been one of the biggest growth areas in the commercial real estate market” over the past year, says Chris Roach at BBG.

By Paul Bubny | Updated on January 04, 2018

Photo of Chris Roach Roach anticipates continued growth for the self-storage sector in 2018..

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%.

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