Miami ranks 7th in the US in key commercial real estate segment; Florida ranks #1 with $1.6 billion in transactions | News
According to a recent report, Miami’s hyperactive real estate market has created an opportunity in a niche segment of the commercial real estate market.
Miami’s commercial real estate had a busy year in 2022, as spending on self-storage space surged to $110 million.
StorageCafe’s most recent industry sales report in which analysts gauged the state of the sales market and sought to identify the top self-storage markets based on investment volume in 2022.
The Bronx, N.Y., led the way with $235 million in sales volume, followed by Phoenix ($196 million) and Ocala ($166 million).
Miami came in seventh with six facilities changing hands that included 549,564 square feet of sales. Among those transactions was a state-leading deal of $33 million for a facility covering 69,000 square feet.
There are now more self-storage facilities in the U.S. than there are McDonald’s restaurants. The industry hovers in the $40 billion range and often reflects how Americans live.
For example, those who prefer to downsize, remove clutter, renovate or even plan to move can store their belongings in these glamorous, usually climate-controlled, storage centers as their house is being shown to potential buyers.
Nationally, the total self-storage sales volume surpassed $10 billion in 2022.
Florida came in first with transactions totaling $1.6 billion for more than 11.7 million square feet purchased in 174 deals.
In the Miami market, deal activity in the self-storage sector was nearly 43% higher than in 2021. Also, the median sales price per square foot for self-storage property was $200 in 2022, an increase of 27% from the previous year.
And, if you’re spotting possible trends, last October, Lynd Development Group, LLC, announced it is developing an eight-story, $30 million mixed-use project off U.S. 1 in Miami featuring a state-of-the-art self-storage facility. The company was approved for 127,923 square feet of storage and 6,025 square feet of ground-floor retail at 9300 S. Dixie Highway in the Dadeland area.
The biggest self-storage surprise in the StorageCafe report of 2022 was Ocala, known as the “Horse Capital of the World” on account of its thoroughbred horses. The fact that Ocala is reported to be the nation’s seventh-fastest growing city by U.S. News and World Report will certainly stimulate the self-storage growth.
Fort Lauderdale recorded $67 million for three self-storage deals. Tampa posted $80 million of trading, though the six deals involved, at an average of 79,000 square feet for each facility.
StorageCafe is a nationwide self-storage search website and a part of Yardi. The site currently features more than 25,000 storage facilities listings, all verified and up to date.
For the complete StorageCafe report, click here.
