Investors seeking reliable income streams and assets that perform well across economic cycles are increasingly turning to self-storage properties. In 2024, investment in the sector reached $3 billion, with momentum continuing into 2025.
According to a recent StorageCafe report, 822 self-storage facilities—representing over 51 million square feet and roughly 2% of the U.S. total inventory—were sold last year. These transactions spanned 49 cities, with an average price of $108 per square foot. However, prices in leading markets were significantly higher, hitting $389 per square foot in Queens, New York.
Prime Group Holdings was among the most active buyers, investing over $264 million. Other major players included Carlyle Group with $178 million, StrategicREIT with $131 million, and Extra Space Storage with $160 million. Notably, Extra Space closed the largest single transaction of 2024, selling a 353,000-square-foot facility in Cerritos, California, to Hines for $91 million.
Queens led the nation in self-storage sales by volume, totaling over $100 million, while Brooklyn ranked fourth with $60 million in transactions.
“These numbers reflect the growing demand for storage in densely populated areas like New York City, where limited living space and frequent moves drive strong interest and investment,” the report said.
Miami followed Cerritos in deal volume, recording $77 million in sales across 297,000 square feet, with an average sale price of $260 per square foot.
The self-storage sector began 2025 with strong momentum. In January alone, transactions occurred in 26 cities, spanning both rapidly growing urban hubs and suburban areas.
Seattle topped January’s list, with $29 million in sales for 93,815 square feet at an average of $309 per square foot. The city’s average monthly storage rate is $181. The report noted that Seattle’s constrained real estate market and rising property values make it an appealing choice for stable investments. It’s also one of the few markets showing year-over-year rate increases, currently at 1.1%.
Vista and Costa Mesa, California, also saw notable activity. Vista recorded the second-largest January deal when Ancora Group Holdings acquired a 110,000-square-foot facility for $24.43 million ($221 per square foot). In Costa Mesa, Westport Properties made the priciest acquisition of the month, paying $387 per square foot for a U.S. Storage Facilities property.
On the East Coast, cities like Manahawkin, New Jersey, and Reisterstown, Maryland, emerged as prime examples of how self-storage supports suburban growth. As populations shift away from major urban centers, these commuter towns attract investment due to their consistent demand and expanding customer base.
Public Storage purchased a 119,000-square-foot facility in Manahawkin for $23 million, representing 55% of the city’s total self-storage space. Rental rates in the area have surged 9% year-over-year, nearly matching prices in larger markets like Seattle.
Meanwhile, in Reisterstown, Lee Development Group acquired the town’s entire self-storage inventory—99,500 square feet—from Extra Space Storage for $17.75 million.
Investor interest in suburban markets near major cities was also evident in Vancouver, Washington, near Portland, Oregon, where Westport Properties acquired an 80,000-square-foot facility from US Storage Centers.
According to StorageCafe, these early 2025 deals may signal another strong year for self-storage investment.
Source: GlobeSt.