By Paul Boyle
Cushman & Wakefield, AZSA Member
There were 24 self-storage transactions and 25 new self-storage facilities built in the Phoenix area in 2017, says the Self-Storage Investment Report by Paul Boyle of Cushman & Wakefield. According to Paul, “Limited buying opportunities are causing investors to actively look in other markets,” but, “All indicators show no signs of investors slowing down in 2018.”
Of the 24 self-storage transactions, 5 occurred in the last quarter of the year. One of those transactions was the tri-state Desert Storage portfolio, purchased by AZSA member Life Storage. This was a single transaction involving 18 properties, 11 of which are in the Phoenix Metropolitan Statistical Area (MSA).
One facility purchased in 2017 Q4 will be demolished by its buyer, Grand Canyon University, as they continue to expand their campus, taking it out of the inventory of space available in this MSA.
In the final quarter of 2017, 8 newly completed self-storage facilities opened, bringing the annual total to 25 self-storage facilities built, renovated, or expanded. These projects added 2.1 million square feet, consisting of 18,000 units to be leased. With 10 new facilities, the southeast valley saw the greatest number of new stores, followed by Phoenix with 5. As 2017 Q4 closed, there were 53 self-storage developments planned/proposed throughout the valley.
Contact Paul at Paul.Boyle@cushwake.com or 602-224-4414.