New development projects began to emerge across the country in 2015, so it should come as no surprise that our list of storage companies to watch in 2016 is dominated by developers. Some have been in the industry for decades, and some are just getting started.
We expect these companies, and several more not mentioned here, to make headlines in the coming months as new supply ramps up.
MCSS Self Storage LLC
Coconut Grove, FL
MCSS, that stands for Miami City Self Storage, is aiming to be the most prolific developer in South Florida with its ambitious plans for 2016.
In mid-December the company broke ground on three new developments in Brickell, Coconut Grove and Sweetwater. The three developments will span a total of 300,000 square feet and each consists of a 1,000 units. The company acquired a total of 10 land parcels in 2015, and principal Jay Massirman told the SpareFeet Storage Beat that they want to acquire just as many, if not more, in 2016.
Banner Storage Group
Banner Storage Group plans to start development on another $120 million to $150 million worth of new self-storage facilities in 2016, which is about par with what the company currently has underway. The company completed three projects last year in Boston, Miami and Chicago. All three were sold to REITs at certificate of occupancy. A total of 18 additional projects are underway at present. Gary Delaney, president of Banner Storage, told the Storage Beat that they would be turning an eye towards sites in Southern California in the coming year.
The joint venture between Dallas real estate firms Rosewood Property Group and Cornerstone Development made a splash last spring when it purchased a five state portfolio of 18 properties managed by Extra Space Storage. In August the JV started construction on a new facility in Dallas, the first project in a $75 million development plan.
Bill Flaherty, president and CEO of Rosewood Property Company, told the Storage Beat that the company is actively bidding on existing portfolios and one-off transactions. The company has one facility under contract at the time. Flaherty said the company has seven facilities currently under development: three in Dallas, two in San Antonio, one in Houston and one in Denver.
Since opening its first developed facility in Hillsboro, OR last June, Get Space has been on a roll. The company has 10 sites under development in the Portland metro area and two additional sites in Nantucket, MA. Principal Daniel Lyman told the Storage Beat that they would be primarily focused on opening those projects during the first part of 2016, but that preparations for new markets are already underway.
“The markets we’ll be entering won’t know what hit them!” Lyman said.
NitNeil has developed a portfolio of a million square feet in seven states: AL, HA, SC, NC, FL, KY, and OH. Principal Nitesh Sapra told the Storage Beat that it is on the hunt for more deals in 2016 in those markets, as well as MSAs outside the Southeast that have between 1 million and 6 million people. Sapra estimates starting work on between five and seven new developments in 2016—beginning with a 67,000-square-foot facility in Tampa, FL that is set to break ground in January.
Industry mainstay Westport Properties, operator of US Storage Centers is gearing up for a particularly active 2016. Chief Operating Officer Mike Brady told the Storage Beat that they would be “content to acquire one facility per month” but that they have an appetite for more than that. The company is targeting urban markets where it currently operates, but will be looking in new states such as IL, SC, NC, PA, NY and CT as well.
Westport plans to break ground on seven to 10 sites in 2016 in CA, AZ, FL and NJ. The company is working on a few more projects that won’t break ground until 2017.
The company is also looking to aggressively grow its third-party management business. The company added five contracts in 2016, and has another five contracts in its pipeline for next year. The company currently has 42 assets under management for third-party owners.
RHW Capital Management Group LLC
Competition for acquisitions was tough for many independent operators in 2015, but RHW, operator of the Store Here brand, managed to win quite a few deals. The company acquired 16 facilities in five states in 2015. James Hanrahan, managing partner, told the Storage Beat that they are looking to complete 15 to 20 more acquisitions in 2016. Hanrahan said the company is also pursuing a few possible development projects. The company is also making a big push to expand its third-party management services.
“We are all geared up with top notch backend and frontline operations,” Hanrahan said.