October 3, 2023
In this newsletter we take a look at the 2023 YTD Self Storage Market as well as the previous 12 months for San Antonio and 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 only to fall back down to the current average rate of $1.15 PSF which is slightly above the 1 year low of $1.10 reached back in December of 2022.
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 to $1.09 PSF in September which is only slightly above the 1 year low of $1.07 reached in August of 2023.
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.
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.
Houston currently has 1,145 existing facilities totaling 67,437,661 square feet with a square foot per capita of 9.15. There are 75 properties in the development pipeline totaling a net-rentable square footage of 5,411,556 which if completed would bring the square foot per capita to 9.89.
San Antonio currently has 466 existing facilities totaling 24,055,252 square feet with a square foot per capita of 9.50. There are 46 properties in the development pipeline totaling a net-rentable square footage of 3,308,091 which if completed would bring the square foot per capita to 10.90.
In total, Texas has about 4,578 self storage properties totaling over 208,000,000 square feet. There is currently over 22,740,000 SF of storage in the development pipeline. Additionally, there are about 1,295 owners of storage in Texas. Of those owners, about 854 are private individual owners with the remaining 441 owners comprised of Public and Private REITs, Private Equity and other Institutional owners.
We hope you found this brief self storage market update useful. Contact us today if there is anything we can do for you!
Check our other related content:
- Blog: https://crdrealty.com/self-storage-market-update-from-2022-to-current/
- Blog: https://crdrealty.com/what-is-going-on-in-san-antonio/
Information derived from Radius+ and Storage Cafe
« Previous Next »