Investment Marketplace Update: Q3 Self-Storage Sales & Development
By Paul Boyle
Cushman & Wakefield, AZSA Member
U-Haul was the star of the show in the 3rd quarter of 2018, as far as acquisitions go. Their purchase of 3 facilities brought the 2018 tally of acquisitions to 13 transactions, which includes 2 portfolio sales. So the total number of properties trading hands in Maricopa County so far in 2018 is 24.
Amerco, U-Haul’s real estate company, bought 2 brand new properties in Glendale and Mesa, and another Queen Creek property built in 1998, which includes an almost 5-acre adjacent site, presumably for expansion.
On the development side, 9 new stores opened in Q3, increasing the 2018 tally to 16 grand openings. These new stores add over 8,000 units and 1.3+ million square feet to the supply of space in the Phoenix metropolitan area.
Year-to-date openings in 2018 are very comparable to 2017, when 17 stores opened by this point in the year, including 10 in Q3-2017. However, the 17 stores delivered by Q3-2017 were larger properties. They added 11,000+ units and over 1.6 million square feet of supply.
And the pipeline remains full: there are 27 developments underway. That’s 10 more than at this time last year. Add to this the 50 facilities currently proposed or planned throughout the valley, and it paints a picture of a glut of new supply. But how many of these projects will actually be built? Stay tuned. We’ll keep letting you know, quarter by quarter.
For more information, contact Paul Boyle at 602-224-4414, firstname.lastname@example.org.