Acquisitions and Development Still Soaring in Phoenix
By Paul Boyle, Cushman & Wakefield, AZSA Member
Ranging in size from 48 units to 937 units, and in age from vintage 1972 to brand new, self-storage sales in Maricopa County in the second quarter of 2019 were varied!
There were 9 transactions, with an overall average of 52,403 rentable square feet at an average price per square foot of $100.18 – but remember, this average was influenced by the extremes at either end of the scale.
The 9 sales include a total of 471,623 square feet and 4,125 units, averaging a per unit price of $11,453 (again, remember the average is influenced by the extremes). One transaction, the 1972 property, needs complete renovation, while another was a brand new Certificate of Occupancy purchase. Just when you thought those were a thing of the past, are they cycling back again?
There have also been 6 self-storage land sales in the Phoenix area since the beginning of the year.
There were 8 grand openings of self-storage facilities in Maricopa County in Q2, adding over 776,000 square feet and about 5,300 units to supply in the Phoenix area. Year to date, 13 new facilities have opened, adding a total of 1.2 million square feet and over 7,500 units to supply so far this year.
These figures well exceed the first half of 2018, when 7 new facilities opened, totaling a little over 412,000 square feet and 2000 units.
Developers continue to show confidence in the Phoenix market, evidenced by the 30 new facilities currently under construction, as compared to 29 for the same period in 2018. The 30 currently under construction include 7 in Mesa/Gilbert and 4 in Phoenix. There are another 55 facilities in the planning stage.
Contact Paul Boyle at email@example.com or (602) 224-4414.