The self-storage industry is gaining traction as a robust investment opportunity in the United States, particularly in Queens, New York. According to a report by StorageCafe, the self-storage sector saw a remarkable national sales figure of $3 billion across 822 facilities in 2024. This included transactions amounting to over 51 million square feet of acquired space.

Queens Emerges as the Top Market

Queens stood out as the leading area for self-storage sales, recording a total sales volume of $101.3 million and 260,732 square feet transacted. This performance surpassed other top markets, including Cerritos, California, which had the largest individual transaction at $91 million but ranked second nationally.

Miami secured the third position with over $77 million in self-storage transactions, while Brooklyn followed closely behind, achieving $60.1 million in sales and 269,872 square feet sold. Manhattan, with its lower sales volume of $17 million and just 39,264 square feet transacted, contributed to an impressive total of approximately $180 million in sales across all three boroughs in 2024.

Demand Outstrips Supply

The report highlights a significant aspect of this market: the limited availability of storage facilities. With only 1.3 million square feet accessible in Queens, 1.6 million in Brooklyn, and 1.1 million in Manhattan, the low availability per capita is fostering a strong demand environment. StorageCafe attributes this trend to the combination of sustained demand, restricted supply, and strong pricing power across the boroughs.

Key Players and Future Trends

In 2024, major investors made significant moves in the self-storage sector. Prime Group Holdings led the way, investing over $264 million in various facilities, followed by Carlyle Group with $178 million, and StrategicREIT, which acquired more than $131 million in assets. Notably, Extra Space Storage expanded its portfolio to more than 3,500 facilities nationwide, investing $160 million, including a notable acquisition of a 94,000-square-foot facility in Seattle for $29 million.

Looking ahead to 2025, activity in the self-storage market remains strong, with 26 regions in the U.S. securing transactions as of January. The focus appears to be shifting towards high-growth metropolitan areas and expanding suburban markets, with cities such as Seattle, Vista, California, and Manahawkin, New Jersey, driving the momentum.