Self-Storage Evolution
[July/August 2005]
Of the 10 largest operators in the self-storage sector, five REITs ranked among the top seven, according to Prudential Real Estate Investors. Public Storage, Inc. (NYSE: PSA), Shurgard Storage Centers, Inc. (NYSE: SHU), Sovran Self Storage, Inc. (NYSE: SSS) and U-Store-It Trust (NYSE: YSI) made the list.
| Top 10 Self-Storage Operators |
| Ranking |
Firm |
Number of
Facilities |
Number of
Units |
Total Net
Rentable SF |
Facility
Average SF |
| 1 |
Public Storage |
1,442 |
824,484 |
87,324,000 |
60,558 |
| 2 |
Shurgard Storage Centers |
616 |
283,369 |
39,000,000 |
63,312 |
| 3 |
Storage USA |
482 |
317,900 |
33,200,000 |
68,880 |
| 4 |
U-Haul International |
1,044 |
377,852 |
32,910,418 |
31,523 |
| 5 |
Sovran Self Storage |
271 |
140,000 |
16,100,000 |
59,410 |
| 6 |
U-Store-It |
165 |
93,172 |
10,154,533 |
61,543 |
| 7 |
Extra Space Storage |
125 |
78,400 |
9,165,000 |
65,320 |
| 8 |
Derrel’s Mini Storage |
43 |
52,148 |
7,132,467 |
165,871 |
| 9 |
A-American Storage Management Co. |
100 |
64,344 |
6,600,129 |
66,001 |
| 10 |
Private Mini Storage |
80 |
46,000 |
5,770,000 |
72,125 |
| Source: 2005 Self-Storage Almanac |
The self-storage sector, which has significantly evolved over the last decade, has seen an increased demand for self-storage space and an above-average public market ownership share, as well as the advent of REIT ownership (which has contributed to the institutionalization of the market), according to Prudential's "The U.S. Self-Storage Market" March 2005 report. As part of that evolution, GE Commercial Finance announced the sale of Storage USA's 458-property portfolio to a joint venture between Extra Space Storage Inc. (NYSE: EXR) and Prudential Real Estate Investors.
Roughly 39,000 facilities encompass the U.S. self-storage sector, totaling 1.46 billion square feet, with a total market value of $120 billion. Prudential also found that the public market ownership share for self-storage in 2003 and 2004 was approximately 13 percent, higher than the apartment, office and industrial sectors. According to the report, Prudential expects the demand for self-storage space to increase and coupled with a slowing supply growth, should result in moderate rent and income growth.
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