Rise of Self-Storage Investments

The self-storage sector in the United States is experiencing significant growth, particularly in Queens. In 2024, this market generated a staggering $3 billion across 822 properties, as reported by StorageCafe. This translates to over 51 million square feet of transactions nationwide.

Queens Leads National Sales

Notably, Queens emerged as the top performer in the market, achieving a remarkable $101.3 million in sales volume with approximately 260,732 square feet transacted. This impressive figure surpassed the next largest transaction in Cerritos, California, where Hines acquired an Extra Space Storage facility for $91 million.

Other notable markets included Miami, which reported transactions exceeding $77 million, and Brooklyn, securing $60.1 million in sales with about 269,872 square feet sold. In Manhattan, despite lower sales of $17 million for 39,264 square feet, the three boroughs collectively contributed nearly $180 million to the self-storage market in 2024.

Market Dynamics and Demand

The low availability of storage per capita in these boroughs underscores a robust demand in the market. Current availability stats indicate:

• Queens: 1.3 million square feet
• Brooklyn: 1.6 million square feet
• Manhattan: 1.1 million square feet

This limited supply is creating an environment characterized by sustained demand and strong pricing power, as highlighted in the StorageCafe report.

Leading Investors in the Field

Several key players are making significant investments in the self-storage landscape. Notably:

• Prime Group Holdings: Over $264 million invested.
• Carlyle Group: Acquisitions worth $178 million.
• StrategicREIT: More than $131 million allocated to self-storage assets.

Extra Space is also expanding aggressively, with over 3,500 facilities across the country and $160 million spent on acquisitions in the past year, including a notable 94,000-square-foot facility in Seattle.

Future Outlook for 2025

The momentum in the self-storage sector is expected to persist into 2025, with 26 areas in the U.S. reporting transactions in January alone. The trend indicates a focus on growing metropolitan and suburban markets, particularly in locations like Seattle, Vista, California, and Manahawkin, New Jersey.