After this year you might start calling the Big D the Big S—as in self-storage.
The Dallas-Ft. Worth metro area has more than 9 million square feet of storage space under development, according to a new report released by Argus Self Storage. The increase in storage space amounts to a more than 16 percent increase over existing supply.
That amounts to 164 projects under some stage of development in 2017: 49 planned, 82 under construction or awaiting certificate of occupancy and 33 facilities in the lease up stage. The wave of self-storage development makes Dallas one of the most oversupplied storage markets in the country.
The report analyzed self-storage development in 35 metro areas. The Miami metro market was a distant second to Dallas, with 70 projects underway this year. Despite the number of projects in Miami, the report rated the market as undersupplied.
In third place was New York City with 54 projects under development, followed by Houston with 52 projects.
According to the report, about 950 new facilities are expected to start construction through the end of 2017.
The report introduction, written by Ben Vestal, states:
“During the current cycle, we are seeing a significant increase in the number of planned projects and actual number of starts The start ratio of planned projects is the highest it has been in ten-plus years.”
Vestal also notes that even if a market is oversupplied, it is still possible to develop successful projects within individual trade areas within those metro areas.
A few more takeaways from the report:
- The most oversupplied market is San Jose, CA with a current supply of 18.78 square feet of storage space per person, and a projected demand of 12.92 square feet per person.
- The most undersupplied market is San Diego, CA with 4.33 square feet of storage space per person and a forecasted demand of 8.9 square feet per person.
- Among the 25 metro areas: 14 are oversupplied, 8 are under supplied and 13 are at equilibrium.
You can read the full report here: Self-Storage Construction and Development Analysis.