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Yardi Report: Top-10 Markets for Storage Development

Developers completed more than 23.8 million rentable square feet of storage space during the first six months of 2023, Yardi Matrix data shows. The nationwide development activity was on an upward trend compared to the first half of 2022, when the national self-storage footprint increased by 21.2 million rentable square feet.

The table below features the leading 10 markets for self-storage deliveries in the U.S., ranked by total rentable square footage completed in the first half of 2023. Deliveries include both traditional self-storages as well as those facilities that have dedicated RV and boat storage spaces. These 10 markets made up approximately 31% of the nationwide deliveries.

1. Chicago

During the first half of 2023, developers completed 17 facilities, which amounted to slightly more than 1.2 million rentable square feet of storage space throughout the Greater Chicago area. The completions represented a 424 percent growth compared to the same period in 2022 when only three properties totaling 233,438 square feet came online. Chicago developers continued to maintain an active new supply pipeline with under-construction projects amounting to 923,101 rentable square feet.

The largest self-storage facility that came online in the Chicago metro was an Extra Space Storage totaling 165,174 rentable square feet in Joliet, Ill. Atwater Group acquired the underway facility in early 2022 and completed the construction with the help of a $12.8 million construction line of credit originated by Midland States Bank. The Joliet facility marks Atwater Group’s third self-storage in the metro. In late 2022, the developer completed another facility under the Extra Space Storage brand in Valparaiso, Ind.

2. Dallas -Fort Worth

In the first six months of the year, 14 facilities totaling 1.1 million rentable square feet were delivered across the Metroplex. Development activity picked up compared to the same period in 2022 when ten facilities totaling 611,785 square feet came online. Self-storage developers in the Dallas-Fort Worth metro have kept busy, the under-construction pipeline includes more than 2.5 million rentable square feet.

All Storage encompassing 168,843 rentable square feet in Fort Worth, Texas, was the largest self-storage that came online in the Metroplex. All Storage financed the construction of its namesake with a construction loan funded by Prosperity Bank. In addition to the usual indoor and drive-up storage units, the property also offers RV and boat parking options.

3. Philadelphia

First Resource Bank facilitated the construction of Self Store USA in West Chester, Pa. Image courtesy of Yardi Matrix

Ten facilities encompassing 934,773 rentable square feet came online in the sPhiladelphia metro in the first half of the year. The completions represented a 177 percent increase compared to the first half of 2022 when five self-storages were delivered totaling 337,123 rentable square feet. Developers continued to add to the metro’s footprint, as Philadelphia’s under-construction pipeline grew to 1.7 million rentable square feet.

A private investor completed Philadelphia’s largest facility on more than 19 acres in West Chester, Pa. The locally owned and operated Self Store USA totaling 135,945 rentable square feet offers climate-controlled and drive-up units along with units as well as RV and boat parking. First Resource Bank provided a construction financing package totaling $6 million for the five-building property.

4. Atlanta

Atlanta’s self-storage market remained attractive to developers, even with the lessening deliveries in the first half of 2023 when nine storages came online totaling 702,471 rentable square feet. Meanwhile, ten facilities encompassing 809,843 rentable square feet were completed in the first half of 2022. To maintain Atlanta’s new development pipeline developers had nearly 2 million rentable square feet of storage space underway.

The Davis Group’s CubeSmart Self-storage totaling 104,310 rentable square feet in Alpharetta, Ga., was the largest facility that came online in the Atlanta metro. Piedmont Bank provided two bridge loans with a combined $6.6 million for the construction of the three-story storage. The developer also has a 128,250-square-foot planned project on Ronald Reagan Boulevard in Cumming, Ga.

5. Houston

In the first six months of the year, eight self-storages totaling 612,393 rentable square feet came online throughout the Houston metro. Development activity increased by 85 percent compared to the same period in 2022 when four facilities encompassing 331,124 square feet were completed. To keep up with the demand generated by Houston’s growing population, the metro’s development pipeline included 1.8 million rentable square feet of storage space.

Big Tex Self Storage encompassing 82,751 rentable square feet on Montrose Boulevard was the largest storage that came online in the metro. Texas First Bank facilitated the construction with a $10.4 million loan. The locally owned and operated facility was the fifth Big Tex Self Storage in Houston, with another on Woodway Drive under construction as well as a prospective facility on Long Point Road.

6. Phoenix

SecureSpace Self Storage in Surprise, Ariz., also offers RV and boat storage. Image courtesy of Yardi Matrix

In the first half of 2023, seven facilities totaling 610,230 rentable square feet came online in the Phoenix metro. Development activity decreased by 42 percent compared to the same period in 2022. Then 14 facilities encompassing more than 1 million rentable square feet were delivered. Developers maintained Phoenix’s active new development pipeline, which included under-construction projects totaling 905,113 rentable square feet.

InSite’s SecureSpace Self Storage totaling 113,192 rentable square feet in Surprise, Ariz., was the largest facility completed in Greater Phoenix. The 25-acre property is the developer’s first in the metro and in addition to traditional storage space also offers a total of 321 boat and RV parking spaces. Delphi Financial Group provided construction financing for the five-building facility and for other under-construction projects in California.

7. Boston

During the first six months of the year, Boston developers completed eight self-storages encompassing 590,870 rentable square feet. The new deliveries represented a slight decrease compared to the same period in 2022 when ten facilities totaling 569,163 square feet came online. The metro’s new supply pipeline includes under-construction projects encompassing 1 million rentable square feet.

Boston’s largest recently delivered self-storage was a Public Storage totaling 92,802 rentable square feet in Framingham, Mass. Twain Financial Partners developed the three-story facility with the help of a $5.8 million construction loan originated by Stonebriar Commercial Finance, and a few months later U.S. Bank also provided additional funding.

8. Miami

In the first six months of the year, seven facilities encompassing 544,917 rentable square feet came online throughout the Miami metro. The exact number of storages were delivered in the first half of 2022, but those facilities encompassed 643,510 square feet. Miami developers have kept busy, maintaining an under-construction pipeline totaling 1.6 million rentable square feet.

Public Storage on NE 135th Street was the metro’s largest recently delivered self-storage. Ocean Bank provided a two-year $13.4 million construction loan for the four-story facility. The four-story property totaling 93,276 rentable square feet sits on less than 2 acres.

9. Orlando

During the first half of the year, Orlando added seven properties totaling 537,080 rentable square feet of storage space to the metro’s inventory. Development activity was slightly higher than in the same period in 2022 when five self storages encompassing 441,420 rentable square feet came online. Orlando’s new development pipeline included roughly 2 million rentable square feet of storage space under construction.

The metro’s largest recently completed facility was developed by Palatine Capital Partners. Western Alliance Bank funded the construction of the Life Storage encompassing 90,414 rentable square feet in Orlando, Fla. The bank provided a $6.8 million construction loan.

10. White Plains

Originally built in 1984 the property was converted to a CubeSmart Self Storage in Wappingers Falls, N.Y. Image courtesy of Yardi Matrix

Five facilities totaling 530,104 rentable square feet came online across White Plains in the first six months of 2023. The number of deliveries increased compared to 2022. In the first half of that year, merely two self-storages encompassing 233,516 rentable square feet were completed. White Plains developers had 1.1 million rentable square feet of storage space under construction.

A conversion project was the largest property that came online in the metro. CubeSmart Self Storage totaling 188,724 rentable square feet in Wappingers Falls, N.Y. was developed by Thylan Associates. The Provident Bank provided a $17.1 million construction loan to reimagine the 1984-built industrial building.

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