Self-Storage Builds Reach New $ Peak

Roach anticipates continued growth for the self-storage sector in 2018..

DALLAS—Still regarded as a niche category despite the double-digit annual increases in funds from operations by some of its leading REITs, self-storage enjoyed a banner year in 2017 and is poised for more of the same in 2018. A metric that’s both a measure of the sector’s strength and cause for concern in some markets is construction, which reached a new high in the first eight months of ’17.

Citing Census Bureau data, Inside Self-Storage magazine recently reported that more than $2.27 billion was spent on new construction of self-storage facilities nationwide through August 31, the highest amount on record. That eight-month tally was more than the $1.9 billion spent in all of 2016, representing an annual increase of nearly 90%.