Old Industrial, New Storage
CRE Daily
November 1, 2024
Self-Storage Conversions Drive Growth in Urban Markets
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| Across U.S. cities, self-storage providers are repurposing industrial and retail buildings, now making up 9% of the nation’s storage space. |
| By the numbers: According to a recent report from StorageCafe, ~78% of converted storage facilities were once industrial buildings, and 16% were retail. More than 1,100 U.S. cities now host these transformed warehouses, factories, and big-box stores. Chicago and New York City lead the way, with 7.3 million and 4.6 million square feet of converted storage space, respectively, concentrated in areas rich in industrial history. |
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| Cost-effective conversion: Converted storage facilities are slightly cheaper for consumers, averaging $141 per month versus $144 for purpose-built storage, and are often located within city limits. In 49% of markets, converted units provide more affordable rates, attracting price-sensitive renters in densely populated urban areas. |
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| Regional dominance: Cities with rich industrial histories, like Chicago, St. Louis, and Philadelphia, lead in conversions. Chicago tops the nation, repurposing 7.3 MSF, nearly half of its self-storage inventory. New York City’s boroughs follow closely, leveraging former industrial buildings to expand storage options amidst limited available land. |
➥ THE TAKEAWAY
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| Why it matters: Adaptive reuse in self-storage is reshaping urban real estate, adding 191 MSF of storage by converting underused industrial and retail spaces. These conversions offer affordable, accessible options in crowded cities, revitalizing old buildings to meet modern storage demands. |
