January 29, 2024
In this 2023 Self Storage Market Update we take a look at the current state as well as the previous 12 months for the self storage markets of San Antonio and Houston.
RATES
Houston
In 2023 Houston storage facilities saw their average rate per square foot rise from $1.12 PSF in January of 2023 to $1.31 PSF in June of 2023 ending 2023 with a massive dip to $.98 PSF which is a new low for the previous 18 months. The previous low was $1.10 PSF which was hit back in December 2022/January 2023.
San Antonio
Similarly, the rates for San Antonio rose significantly from January of 2023 at $1.21 PSF to a high of $1.35 PSF in May only to fall drastically to $.92 PSF at the end of 2023 which is slightly above the 18-month low of $.87 PSF reached in October of 2023.
OCCUPANCY
At the time of this report, REIT occupancy had not been reported for Q4, thus no changes were noted from the last market update we provided for Q3. We will update this report on our website once Q4 is released. Q3 occupancy information is reposted below for your convenience.
Houston
Houston
Occupancy in Houston for the REITs (Extra, Life (ES), Cube and Public) as of September 2023 is hovering between an average of 95% and 91% with Extra on top. This is down from the REIT’s peak occupancy over the last 10 years which occurred in late 2021 where average occupancy ranged from 97% to just under 95% with Extra leading the pack once again at 97%.
Though Occupancy is down for Houston, it is still mostly above the 10 year historical low reached back in mid 2019 which ranged from 88.5% to 91% with Life on top.
San Antonio
Occupancy reporting in San Antonio for the REITs is hit and miss, however Cube and Life received the best coverage which showed a very similar pattern to Houston with average occupancy for Sept 2023 coming in at 94% to 90% for Cube and Life respectively. This is down from the 10 year peak reached in late 2021 of 97.5% and 94.5% for Cube and Life respectively.
SUPPLY
Houston
Houston currently has 1,155 existing facilities (10 delivered in Q4) totaling 67,711,769 square feet with a square foot per capita of 9.09. There are 77 properties in the development pipeline totaling a net-rentable square footage of 5,516,849 which if completed would bring the square foot per capita to 9.83.
San Antonio
San Antonio currently has 469 existing facilities (2 delivered in Q4) totaling 24,350,041 square feet with a square foot per capita of 9.63. There are 50 properties in the development pipeline totaling a net-rentable square footage of 3,655,039 which if completed would bring the square foot per capita to 11.07.
Texas
Texas has an estimated population of 30,503,301 with about 4,628 (Co-Star) self-storage properties totaling over 237,723,440 square feet. This equates to a square foot per capita of 7.79. There is currently over 23,072,301 SF of storage spread between 332 stores in the development pipeline.
Additionally, according to Co-Star, there are about 1,307 owners of storage in Texas. Of those owners, about 860 are private individual owners with the remaining 447 owners comprised of Public and Private REITs, Private Equity and other Institutional owners. Together, the private individual owners own approximately 1,302 properties with the remaining storage properties owned by REITs, Equity etc. according to Co-Star.
The #1 owner of storage by property count in Texas is Public Storage at 340 properties followed by Extra at 281 and NSA at 176.
In 2022, Texas ranked number 2 in net migration with a total of 172,000 net moves to the state.
We hope you found this brief 2023 Self Storage Market Update useful. Contact us today if there is anything we can do for you!
Checkout some of our other related content:
- Blog: https://crdrealty.com/what-is-square-foot-per-capita/
- Newsletter: https://crdrealty.com/self-storage-market-update-from-2022-to-current/
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