Investors in search of steady cash flow and assets that perform well under various market conditions are turning to self-storage facilities. In 2024 alone, they poured $3 billion into new acquisitions, and the trend appears to be continuing in 2025.
In total, 822 properties containing more than 51 million square feet changed hands in 2024, amounting to 2% of total U.S. inventory, according to a new report from StorageCafe. Large transactions took place in 49 cities. The average sale price was $108 per square foot, but among market-leading cities it was far higher, reaching $389 in Queens, NY, for example.
The most active companies last year included Prime Group Holdings, which forked out more than $264 million for self-storage facilities. Other facilities attracted investments of $178 million from the private equity company Carlyle Group, $131 million from StrategicREIT, and $160 million from Extra Space Storage, which also scored the year’s largest deal with the sale of a 353,000-square-foot facility in Cerritos, CA, near Los Angeles to Hines for $91 million.
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By location, Queens had the highest volume of self-storage sales, totaling more than $100 million. Brooklyn came in fourth nationwide with $60 million in sales.
“These figures underline the intense pressures of dense urban living in New York City, where shrinking apartments, high turnover, and limited space drive extraordinary interest—and lucrative opportunities—for self-storage facilities,” the report said.
Following Cerritos, Miami came in third on this metric with $77 million in sales, totaling 297,000 square feet, with deals averaging $260 per square foot.
This year began with a similarly strong showing for self-storage facilities. Deals were struck in 26 cities in January alone. Investors targeted a mix of high-growth metropolitan markets and expanding suburban markets.
Seattle led the nation in January 2025 with self-storage sales of $29 million for 93,815 square feet at an average of $309 per square foot. The average monthly street rate for self-storage units in Seattle is $181. “Limited residential and commercial space, coupled with escalating property values, makes Seattle a prime market for investors seeking stable returns,” the report noted. It is also one of a handful of markets showing year-over-year price increases of 1.1%.
Similar trends pushed Vista and Costa Mesa, CA, into the top 10 for sales growth in January 2025. Vista saw the month’s second-largest deal when Ancora Group Holdings bought a 110,000-square-foot facility for $24.43 million at $221 per square foot. Costa Mesa secured a major deal with Westport Properties' purchase of a U.S. Storage Facilities property for $387 per square foot—the most expensive nationwide in January.
On the East Coast, the report described Manahawkin, NJ, and Reisterstown, MD, as “veritable case studies for the strategic importance of self-storage in commuter-oriented regions.” As the population moves in from metropolitan areas, they attract investment due to their consistent and expanding population base. “Storage facilities in these areas support numerous lifestyle changes—such as household relocations, downsizing, and entrepreneurial activities—ensure stable, diversified customer demand," StorageCafe wrote.
Public Storage’s purchase of a 119,000-square-foot facility in Manahawkin for $23 million accounted for 55% of the city’s total self-storage inventory. “Monthly storage rates in this small coastal city rival those in Seattle, with a 9% year-over-year increase,” the report commented.
In Reisterstown, Lee Development Group went one better, grabbing all the self-storage space in this Baltimore suburb when it bought a 99,500-square-foot unit from Extra Space Storage for $17.75 million.
Similar interest in secondary metros near major cities was displayed when Westport Properties acquired an 80,000-square-foot property from US Storage Centers in Vancouver, WA, near Portland, OR.
“As the year progresses, these early deals could set the tone for what could be another year in self-storage investment,” the report stated.
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