Sales Velocity Down, Prices Up, and New Construction Continuing Strong in Q1 of 2019
By Jeff Gorden, Eagle Commercial Realty Services/Argus Self Storage Sales Network, AZSA Board Member and Secretary
In the first quarter of 2019, 8 self-storage properties sold, of which 2 were in Phoenix, 2 were in Tucson, and the other 4 were elsewhere in the state. None of these properties were part of a portfolio; each was purchased by an individual buyer.
Comparing now to one year ago, sales prices have increased but transaction velocity has decreased, both attributed to limited supply of properties available for sale.
One of the two Tucson properties sold was 100% RV storage. These properties sell for a lower price per square foot, resulting in a downward effect on the average price per square foot for Q1 2019.
On the development side of the self-storage investment coin, 28 facilities have opened in the last 4 quarters, including 7 during Q1 2019.
There are 36 under construction across the state and another 73 in the pipeline, comprising just over 3.2 million square feet.
- Phoenix: 62 in the pipeline; 29 under construction
- Tucson: 7 in the pipeline; 3 under construction
- Elsewhere in AZ: 4 in the pipeline; 4 under construction
Notably this is the first meaningful development outside of the Phoenix and Tucson metros we have seen since the great recession. New supply of self-storage since 2010, by square foot and completion quarter, are shown below.
For more information
Contact Jeff Gorden at 480-331-8880 or firstname.lastname@example.org. Jeff is with Eagle Commercial Realty Services, an Argus Self Storage Sales Network Broker Affiliate; and he is a Board Member and Officer of the Arizona Self-Storage Association. For this report as a PDF, click below.