- Investors spent $3B on self-storage properties in 2024, acquiring over 51 MSF across 822 transactions.
- Prime Group Holdings, Carlyle Group, StrategicREIT, and Extra Space Storage led the year’s major deals.
- Queens, NY, topped the list in total sales volume at over $100M, with prices hitting $389/SF.
- Early 2025 deals point to continued investor momentum, with Seattle leading January activity at $29M in sales.
- Suburban and secondary markets like Manahawkin, NJ, and Reisterstown, M,D are gaining favor as demand grows outside urban cores.
Self-Storage Surges as CRE Safe Haven
In a volatile CRE environment, self-storage proved its staying power in 2024, drawing $3B in investment volume and representing 2% of total US inventory, according to StorageCafe.
The sector’s resilience, consistent cash flow, and versatility in both up and down markets have made it increasingly attractive to investors ranging from private equity to REITs, as reported by GlobeSt.
Big Deals, Big Markets
Among the largest deals of 2024:
- Extra Space Storage sold a 353 KSF facility in Cerritos, CA, to Hines for $91M, marking the year’s biggest single transaction.
- Prime Group Holdings invested $264M across several acquisitions.
- Carlyle Group followed with $178M, and StrategicREIT deployed $131M.
Major urban markets dominated sales volume, with Queens leading at $100M+ and Brooklyn landing in fourth at $60M. In Miami, investors closed $77M in deals across 297 KSF.
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Seattle Leads in Early 2025 Activity
Investor appetite remained strong in early 2025, with deals already closed in 26 cities in January alone. Seattle led the month with $29M in sales over 93 KSF, averaging $309/SF.
Monthly rates in Seattle now average $181, and prices rose 1.1% YoY, driven by the city’s tight space constraints and rising real estate values.
Other key January deals:
- Vista, CA: Ancora Group’s $24.43M purchase of a 110 KSF facility.
- Costa Mesa, CA: Westport Properties paid $387/SF—the highest price nationally for the month.
Suburban Growth Markets Draw Investor Attention
Demand is also rising in commuter-oriented suburbs, where demographic shifts are fueling new opportunities:
- Manahawkin, NJ: Public Storage acquired a 119 KSF facility for $23M, capturing 55% of the city’s inventory. Rents here rose 9% YoY, rivaling Seattle.
- Reisterstown, MD: Lee Development Group acquired 100% of the market’s self-storage inventory from Extra Space Storage for $17.75M.
- Vancouver, WA: Westport Properties continued its suburban push with an 80 KSF acquisition near Portland.
These markets reflect growing investor focus on secondary metros and suburbia, where lifestyle shifts like remote work, downsizing, and business formation are creating stable, year-round demand.
Why It Matters
The self-storage sector’s low overhead, stable occupancy, and counter-cyclical appeal stand out in the current CRE landscape. With institutional players ramping up activity and suburban markets gaining traction, self-storage is no longer a niche asset—it’s a core investment strategy.
What’s Next
With early 2025 already off to a fast start and interest stretching from coastal metros to emerging suburbs, the stage is set for another strong year in self-storage. Expect more consolidation, higher per-square-foot valuations in dense urban markets, and increased activity in Sun Belt and commuter-friendly regions.
