One sector of Charlotte’s commercial real estate had a insane year in 2021 as spending on self storage space surged to a record $79.6 million.
According to a new report by StorageCafe, the Charlotte self storage market witness the following transaction activity last year:
- Deal activity in the self storage sector in Charlotte was nearly 9 times higher than in 2020.
- Median sales price per square foot for self storage property in Charlotte increased from around $9 in 2020 to almost $80 in 2021, a nine-fold year-over-year increase.
- Overall, 7 facilities changed hands in Charlotte in 2021, comprising nearly 488K square feet of storage.
- Despite this market being fairly well penetrated and offering reasonable rents —Charlotte offers 8 sq. ft/capita — street rates have seen a 17.44% year-over-year increase. They are now standing at $101/month for a 10×10 unit, still below the national average $128.
- Nationally, self storage sales volume surpassed $10.9 billion in 2021, the highest transaction volume on record.
Charlotte was also ranked 8th in the nation in terms of overall self storage sales last year:
Top 10 Cities for Self Storage Sales in 2021
| 1 | Manhattan | NY | $2,945.60 | 18 | 2,969,402 |
|---|---|---|---|---|---|
| 2 | Phoenix | AZ | $180.66 | 12 | 1,117,878 |
| 3 | Queens | NY | $144.44 | 3 | 342,488 |
| 4 | Fairfax | VA | $98.72 | 2 | 327,736 |
| 5 | Tampa | FL | $97.95 | 13 | 1,067,239 |
| 6 | Orlando | FL | $90.00 | 11 | 931,928 |
| 7 | Millbrae | CA | $80.00 | 1 | 85,500 |
| 8 | Charlotte | NC | $79.64 | 7 | 704,286 |
| 9 | Miami | FL | $76.73 | 5 | 487,171 |
| 10 | Tucson | AZ | $68.31 | 7 | 472,407 |
Growth in the self storage sector is expected to remain positive, with demand driven by the pandemic recovery and the overall steady demand for extra space – 2022 will likely be significantly higher than 2021.