Real Capital Analytics Reveals Top Markets for Self-Storage Acquisition, Construction Activity

Article originally posted on HERE on September 9, 2019

Real Capital Analytics Inc. (RCA), a firm that provides data on the commercial real estate investment markets, has published lists identifying the top 10 U.S. markets for self-storage acquisition and construction activity. The lists are part of an “RCA Insights” report summary of the self-storage sector.

The top market targeted for self-storage construction is Northern New Jersey, having attracted $294 million in the 12 months ending June 30. New York City (NYC), at $262 million, ranked second, followed by Orlando ($199 million), Dallas ($190 million) and Phoenix ($163 million).

Detroit ranked No. 1 for acquisition markets during the same period, with $391 million in activity. Houston ranked second at $362 million, followed by NYC ($287 million), Boston ($263 million) and Miami/Dade County, Fla. ($182 million). Overall, individual asset and portfolio sales reached a record $1.8 billion in the second quarter.

Houston, Miami/Dade County and NYC were in the top 10 of both lists, with Miami/Dade ($120 million) and Houston ($109 million) ranking eighth and 10th, respectively, on the construction-market list.

The report also highlights trends related to institutional investment, capitalization rates and market compression. The summary is an excerpt from a longer analysis of the U.S. self-storage market published as part of “US Capital Trends,” an RCA publication examining commercial real estate activity.

Based in NYC, RCA is privately held company, with additional offices in London and Singapore as well as San Jose, Calif.