Out With The Old, In With Self Storage Conversions

According to Storage Cafe, the U.S. has nearly 2 BSF of self storage, largely driven by urban density and lifestyle changes that spur storage demand. 

Setting The Scene

With over 90% of this inventory added in the last four decades, self-storage has become a vital resource in urban life, helping residents navigate space limitations. 

However, high land costs and zoning complexities are prompting developers to repurpose existing structures, fueling a trend of adaptive reuse in the industry.

Self-storage conversions utilize city infrastructure and provide a cost-saving option. Units in converted facilities average $141 per month, slightly lower than purpose-built units, and the savings are passed on to renters in nearly half of U.S. cities. 

Converted facilities are often in central locations, making them accessible to urban residents looking for close-to-home options.

Conversion Capitals

Midwest and East Coast cities, with their abundant, historic industrial buildings, lead the nation in adaptive reuse for storage:

• Chicago: The Windy City tops the list, with nearly 7.3 MSF of converted storage space. Much of this inventory repurposes industrial sites dating back to the 1920s, and adaptive reuse accounts for almost half of the city’s self-storage.
• New York City: With space at a premium, NYC has embraced conversion, particularly in Brooklyn, Manhattan, and the Bronx. Brooklyn’s converted self-storage makes up over half of the borough’s inventory, while Manhattan sees even more reliance on adaptive reuse, which represents 75% of its self-storage options.
• Philadelphia: Ranking fourth nationally, Philadelphia has turned 2.8 MSF into storage, alleviating some of the city’s space constraints. The city remains undersupplied, with just 3.2 SF per person, well below the national benchmark of 7 SF per capita.

Quirky Conversions

Beyond the practical benefits, many converted self-storage facilities have fascinating pasts:

• Denver: A WWII-era aviation hangar now serves as an Extra Space Storage facility, preserving the historic “Hangar No. 2” marking.
• Baltimore: An old brewery from 1885 was transformed into a CubeSmart storage facility, which gives residents access to 165 KSF of storage space within the structure.
• Rockford, IL: A former 1926 banquet hall now holds 41 KSF of storage, transitioning from grand events to practical storage solutions.

These unique transformations bring character to self-storage while creatively addressing urban space challenges.

West Coast Growth

Urban density and limited development space in West Coast cities like Portland, Seattle, and Los Angeles also drive self-storage conversions. 

With land values high, developers are finding cost-effective alternatives in adaptive reuse, bringing properties into the rental market with lower conversion costs and monthly rents. 

In Portland, for example, converted properties average $1 PSF to develop, versus $12 for new construction. This price advantage results in lower rents, as converted units in Portland average 13% less than purpose-built counterparts.

Southern Hospitality

Although Southern cities generally have more land for new construction, some key markets are turning to adaptive reuse. 

Houston and Dallas, with their rapid population growth, have led the way in Texas, where converting buildings for storage has proven valuable, particularly in densely populated areas. 

In Memphis, TN, conversions now make up 22% of the city’s inventory, helping manage growth in high-demand neighborhoods.