25 Oct 2022
With interest rates rising, it is harder for ground up development for self storage projects to find funding. The Radius+ team took a look at the top 3 markets with the highest square footage of self storage and saw how much their total square footage has increased each year in the past 3 years, to see if there has been a slow down in development.
In the Dallas-Fort Worth-Arlington, TX CBSA Its total square footage grew 2.5% in 2020, 3.6% in 2021, and 1% so far in 2022.
In the Houston-The Woodlands-Sugar Land, TX CBSA Its total square footage grew 1.2% in 2020, 1.1% in 2021 and 1% so far in 2022.
For the New York-Newark-Jersey City, NY-NJ-PA CBSA Its total square footage grew 5.2% in 2020, 3.8% in 2021, and 4.3% in 2022 so far.
It is notable that from 2020 to 2022 so far two of the top 3 markets have had their new footage growth decrease to 1% in 2022 so far. The exception being the New York Metro CBSA, which is widely known for adding tons of new supply to keep up with the steep demand in the densely populated Urban area. With new supply growth seeming to slow down, many self storage investors may turn their interests into acquiring existing facilities to expand them and add value through new renovations.
Sourced from Radius+ Data
