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Deal activity surges as investors target high-barrier markets in New York, Las Vegas and Atlanta<\/span><\/span><\/span><\/em><\/p>\n Transaction volume in the U.S. self-storage sector surged in the third quarter of 2025, reaching nearly $1.6 billion. That is a 62% increase compared to the same period last year, as investor confidence rebounded following a period of caution.<\/span><\/span><\/span><\/p>\n A total of 266 facilities changed hands between July and September, up from 201 in the third quarter of 2024, according to a report released this month by StorageCafe.<\/span><\/span><\/span><\/p>\n The data indicates that while private and non-real estate investment trust (REIT) buyers accounted for the majority of acquisition entities, REITs played a strategic role, participating in approximately 25% of transactions and acting primarily as buyers to consolidate portfolios.<\/span><\/span><\/span><\/p>\n The volume of space traded increased from 12.8 million square feet in the third quarter of 2024 to 18.4 million square feet in the third quarter of 2025.<\/span><\/span><\/span><\/p>\n Institutional investors, particularly REITs, focused on quality assets, paying an average of $146 per square foot compared to $133 per square foot paid by non-REIT buyers. This premium reflects a strategic emphasis on consolidating facilities in markets with higher barriers to entry and stronger performance metrics.<\/span><\/span><\/span><\/p>\n Geographically, the Sun Belt continued to attract significant capital, accounting for 53% of all transactions. However, this figure represents a decline from the roughly 70% seen in the previous quarter, suggesting that institutional investors are diversifying their portfolios beyond the region.<\/span><\/span><\/span><\/p>\n Florida, California and Georgia emerged as the top states for transaction value, with each recording sales exceeding $200 million. While Texas recorded the highest number of individual transactions, its total combined sales volume remained below $50 million due to the trade of smaller or more moderately priced assets.<\/span><\/span><\/span><\/p>\n Among metropolitan areas, New York City led the nation with $90 million in sales volume. The market\u2019s high density and limited land availability drove pricing to $526 per square foot, the highest in the country.<\/span><\/span><\/span><\/p>\n A significant contributor to this volume was Storage Post\u2019s acquisition of three facilities in Manhattan, including a $60 million property on Amsterdam Avenue.<\/span><\/span><\/span><\/p>\n Las Vegas followed with $76.3 million in transactions, averaging $200 per square foot. Etude Capital was a primary buyer in the region, acquiring three Extra Space Storage locations.<\/span><\/span><\/span><\/p>\n Atlanta rounded out the top three cities with almost $43 million in sales, averaging $223 per square foot in a market where supply per capita remains relatively low at 4.6 square feet of storage.<\/span><\/span><\/span><\/p>\n