Space to Spare in the Self-Storage Industry

Space to Spare, in New York - New York Times

Other areas and companies may be scaling back on their plans for more self-storage, but not here in Brighton. After the 100,000 sq ft Public Storage building is built next year we will probably have 400,000 sq ft of storage space in Allston and Brighton.

Yet, analysts say the market may now be overbuilt after years of explosive growth. Nationally, “there’s about 5.5 square feet per capita of storage space today, and a decade ago, it was half that,” said Michael Knott, an analyst with Green Street Advisors, based in Newport Beach, Calif. The trend in New York is comparable. “I doubt you will see the growth in the next 10 years that you saw in the last 10,” he added.

Some owners of self-storage businesses are sounding cautious, even as their newest buildings open.

“We’re being really careful,” said Steven Novenstein, a partner at Storage Deluxe, a Manhattan-based company that owns 13 storage buildings with signature orange-and-blue striping in the New York City region, with 1.36 million square feet of space.