Overview
StorTrack data shows steady activity in the self-storage sector in the second half of 2024, with 110 transactions completed across the United States. To date, multi-operators and REITs (Real Estate Investment Trusts) each represented over 40% of the total transaction volume, with investment activity largely concentrated in the Southeast. Multi-operators were especially active in the Midwest, completing five transactions involving Storage Rentals of America facilities in Michigan and Illinois. Meanwhile, REITs focused their efforts primarily on the Southeast, with Florida standing out as a key market.
Transaction Breakdown by Region
Regional Transaction Analysis
Since not all final sale prices are disclosed in transaction records, StorTrack centered its analysis on 88 transactions with reported prices totaling over $629 million. The analysis uncovered distinct patterns among buyer types. While REITs and Multi-operators completed 34 transactions each, REITs predominantly targeted larger properties, acquiring more than 2.5 million net rentable square feet for $392.4 million. In contrast, Multi-operators transacted 1.6 million square feet for $173 million.
While Multi-operators were heavily active in the Midwest, their more significant deals – averaging over $10 million – occurred primarily in the Southeast. Notable examples include three SmartStop Self Storage transactions in South Carolina, North Carolina, and Virginia, each averaging $12 million. In Northern California, multi-operator deals ranged from $106 to $141 per rentable square foot, peaking at an eye-catching $256 per rentable square foot in Salinas. Located in the Monterey Bay area, Salinas ranks among the most expensive cities in the U.S., highlighting the premium associated with this market.
Transaction Breakdown by Operator Type
REITs were most active in the West and Southeast, completing nearly $300 million in transactions across these regions. In the West, a significant portion of California’s total stemmed from the record-breaking $91 million sale of the Extra Space Storage facility in Cerritos. This 260,273-square-foot property, featuring 2,460 units and 88% occupancy at the time of purchase, marks the largest single-property self-storage transaction in history, according to CBRE. StorTrack also identified more than 15 REIT transactions in the Southeast, with Florida and South Carolina leading the region, each recording four transactions. On Florida’s west coast, three Public Storage facilities in the Crestview-Fort Walton market sold for prices ranging from $9.1 million for a 65,000-square-foot property to $15.6 million for a 59,400-square-foot facility on 13 acres in Lakeland.
Moreover, CubeSmart made headlines in the east with the $26.5 million purchase of a 124,720-square-foot facility in Delray Beach. In South Carolina, four Public Storage facilities were transacted, the highest price being $11.1 million for a 79,300 sq ft facility on 4.4 acres.
While less active overall, Single operators made a notable impact, completing over ten transactions totaling $43 million in the Southeast. Standout deals included Washington Road Storage’s 197,262-square-foot facility in Evans, Georgia, which sold for $17.7 million, and South Andrews Storage’s 12,710-square-foot facility in Fort Lauderdale, Florida, built in 1955 and sold for $3.7 million.
The second half of 2024 is showcasing a robust self-storage investment landscape. From record-breaking deals in California to strategic acquisitions in the Southeast, this period underscores the industry’s adaptability and growth. REITs and Multi-operators are fueling competition, capitalizing on regional opportunities and targeting high-demand markets, while Single operators are finding success in niche areas. This wide-ranging activity highlights self-storage’s resilience and solidifies its position as a key asset class in today’s market.
Stay tuned to StorTrack for more updates on industry trends and market insights. StorTrack is the leading provider of self-storage market data and analytics, helping operators and investors make informed, data-driven decisions.
