Out With The Old, In With Self Storage: U.S. Cities Convert Industrial, Retail Spaces Into Storage Facilities

• An impressive 191 million square feet of the U.S. self storage inventory — roughly 9% of the total supply — comes from adaptive reuse projects.
• About 78% of buildings converted to self-storage were previously industrial facilities, while 16% were formerly retail spaces.
• The average street rate for a unit in a converted self storage facility is $141 per month, slightly undercutting the $144 average for purpose-built facilities. In fact, converted properties offer more affordable rates in 49% of the cities with both types of storage, making them an increasingly attractive option for cost-conscious consumers.
• Midwestern and East Coast cities, with their wealth of historic industrial buildings, are at the forefront of self storage conversions.
• Chicago leads the pack with the highest square footage of converted self storage,  followed by New York City’s Brooklyn and Manhattan boroughs.

Self storage construction has surged in recent decades, driven by the industry’s ability to provide flexible solutions to life’s challenges — whether it’s dislocation, divorce, death or the need to downsize. With living space increasingly at a premium in urban centers, it’s no surprise that self storage has become an essential resource. The sector has risen to meet this demand, building an impressive inventory of nearly 2 billion square feet nationwide, with over 90% of that space delivered in the last four decades.

But not all self storage space comes from new construction. In many cities across the country, land is in high demand (read: expensive), and stringent zoning laws can make it challenging for developers to construct facilities from the ground up. As a result, a growing number of self storage developers are turning to the conversion of existing buildings into self storage spaces.

This strategy offers a practical solution to the space crunch while optimizing the use of urban real estate. By repurposing existing structures, developers can quickly address the rising demand for storage solutions, even in densely populated urban areas. Moreover, these conversions often align with city planning objectives, creating a win-win scenario for both developers and local communities.

Our analysis of Yardi Matrix data for 1,126 cities nationwide reveals that converting existing buildings into self storage is a widespread practice. Nationally, these conversions represent 9% of the total self storage inventory, amounting to nearly 191 million square feet distributed over 2,300 facilities. More than half of these conversions have taken place in the past decade, driven by the growing demand for self storage services and reflecting the broader trends of urban infill and revitalization efforts across the country.

For consumers, it’s helpful to know that opting for a converted facility can come with several benefits. These facilities are often more conveniently located within city limits, making them easier to access, and they typically offer lower prices compared to purpose-built stores. On average, a unit in a converted facility costs $141 per month, while purpose-built facilities charge a bit more at $144. In fact, in almost half of the 1,100-plus cities we analyzed, converted facilities offer even better rates, making them a smart choice for budget-conscious renters.

Interestingly, the majority of converted facilities — about 78% — were once commercial or industrial properties such as factories and warehouses. Another significant portion, roughly 16%, comes from repurposed retail spaces. The rest of the conversions include former office buildings, residential structures and other types of properties.

The popularity of these conversions naturally varies by region, reflecting the unique market dynamics and real estate trends in different parts of the country.

Midwest and East Coast cities with rich industrial heritage lead the way in self storage conversions

America’s historical industrial heartland — cities in the Midwest and along the East Coast, once dominated by manufacturing, shipping and heavy industries — are now at the forefront of repurposing old structures for self storage. As these cities have shifted to more diverse tech- and service-oriented economies, they’ve been left with a significant inventory of older industrial or commercial buildings that are no longer in use. These buildings, with their large, open spaces, are often perfect candidates for conversion into self storage facilities.

In densely populated urban areas like Chicago, New York City and Philadelphia, where available land for new construction is scarce, converting existing buildings is often a more feasible and cost-effective option. This approach not only makes the best use of available space but also helps navigate zoning challenges that can complicate new developments.

Chicago’s adaptive reuse boom: 7.3 million square feet of space repurposed into self storage

The Windy City leads the nation in self storage conversions, with almost 7.3 million square feet of space successfully redeveloped into storage spaces, divided between 72 properties. These projects account for nearly half of Chicago’s total self storage inventory. Without this added capacity, Chicagoans would face a much greater shortage of storage space, as the city’s inventory per capita currently stands at a modest 3.3 square feet.

The oldest building converted to self storage in Chicago is a former industrial space on North Broadway Street, dating back to the 1920s. Today, it serves as a Public Storage facility in a vibrant and diverse part of the city.

Staying in the Midwest, St. Louis, MO, ranks fifth nationally for its enthusiasm for converting existing buildings into self storage facilities. The city boasts 2.2 million square feet of converted space, which make up about three-quarters of the local self storage inventory. The largest converted self storage property in St. Louis is a former grocery store, originally built in 1954, now operating as a Store Space facility with over 116,000 square feet of rentable space and a variety of climate-controlled unit sizes.

Milwaukee, WI, ranks eight nationally with 1,65 million square feet of converted self storage space divided between 19 self storage facilities. These facilities make up a substantial 47% of the local inventory, with most conversions originating from former industrial buildings. Historically, Milwaukee was a key player in the American industrial landscape, with factories producing everything from machinery to motorcycles. Today, the city is experiencing a resurgence fueled by growth in sectors like health care, education and technology, making it an attractive destination for newcomers seeking job opportunities and a lower cost of living. The city’s ongoing revitalization efforts have driven the practice of converting old industrial buildings into self storage facilities, helping residents better manage their space at home.

Kansas City, MO, boasts over 1.5 million square feet of adaptive reuse self storage, representing a significant 39% of the city's overall inventory and helping the city land on the 10th position in our ranking.

Cincinnati, OH, another relatively undersupplied midwestern city, has also turned to conversions to expand its self storage inventory. The city is home to 16 converted self storage facilities, collectively offering almost 1.3 million square feet of space, which accounts for a third of Cincinnati’s total inventory. The latest and largest conversion in Cincinnati is a former discount store on Hamilton Avenue, built in 1967 and recently transformed by Public Storage into a 142,000-square-foot self storage facility.

The Twin cities, Minneapolis and St. Paul in Minnesota, also rank among the country's top 20 cities for adaptive reuse, with 1.4 million and 1.3 million square feet of space, respectively, converted to self storage.

4 NYC boroughs among the top 20 markets for self storage conversions

With its chronic lack of available space, it’s no surprise that New York City leads the nation in conversions to self storage. Across the city’s boroughs, there are plenty of industrial, commercial and office buildings that have outlived their original purposes. Plus, with NYC’s history as a major shipping port, there are countless old port warehouses that are perfect for turning into storage facilities.

Brooklyn ranks second nationally, with 4.6 million square feet of space across 42 properties converted for self storage use. These properties represent slightly more than half of the borough’s total inventory. Despite this, Brooklyn’s per capita inventory remains low at just 1.65 square feet.

The most significant conversion in Brooklyn is a former industrial building dating back to 1906, located near the South Brooklyn Marine Terminal. This property is now an Extra Space Storage facility, offering over 467,000 square feet of rentable storage space to the local community.

Manhattan has 4.4 million square feet of space across 37 facilities that has been converted into self storage. This actually accounts for three-quarters of all the storage options in the borough. Despite these adaptive reuse efforts, self storage availability in Manhattan remains limited, with just one square foot of space per capita. As a result, local storage rates are highly competitive, averaging $241 per month for a standard unit — well above the $136 national average.  

The Bronx is home to 21 converted self storage facilities, mostly repurposed from industrial or retail buildings. These facilities offer 2.1 million square feet of rentable space, representing about one-third of the borough’s total inventory. The cost of acquiring a square foot of convertible space is $6, four times less than purchasing an already functional self storage facility. This cost advantage is passed on to consumers, with rent in converted properties being 17% lower than in purpose-built facilities ($165 vs. $199). The Bronx’s largest converted facility, a commercial building from 1906 managed by Public Storage, features nearly 229,000 square feet of space.

Queens also contributes to the city’s conversion trend with 15 buildings repurposed for self storage, totaling 1.4 million square feet of self storage space. However, conversions make up only about 18% of the borough’s total self storage inventory. Similar to other boroughs, purchasing a building suitable for self storage use in Queens is significantly less expensive than buying a turnkey facility, at $5 versus $37 per square foot.

Staying on the East Coast, Philadelphia, PA, ranks fourth nationally with 2.8 million square feet of converted self storage space, distributed across 24 projects, which account for 36% of the city’s total inventory. Although these conversions aim to ease the city’s space constraints, storage options remain limited.

Philadelphia’s total stock amounts to just 3.2 square feet of storage per person, significantly below the benchmark of seven square feet per capita. The average monthly street rate for a storage unit in Philly is $148, well above the national level.

Baltimore, MD, has over 1.5 million square feet of space adapted for self storage use, spread across 15 facilities, ranking 11th nationally for adaptive reuse. The converted self storage represents a significant 28% of the local stock, but, even so, the city features a modest per capita inventory of under 4 square feet.

Conversions address growing need for space in Portland, OR, and Seattle, WA

Both Portland and Seattle have experienced significant population growth over the past few decades, resulting in increased urban density and a scarcity of land for new developments, including residential, commercial and self storage projects. As demand for living space has surged, so has the need for self storage services in these cities.

Historically, Portland and Seattle were key hubs for the manufacturing, shipping and timber industries. With the decline or relocation of these industries, many properties have become vacant or underutilized. This shift has opened the door for the self storage sector to repurpose these buildings, adding to the local inventory without the need for extensive new construction. Self storage facilities offer a relatively low-cost, high-return solution by utilizing existing structures, allowing property owners to generate steady income in these high-cost markets.

In Portland, OR, 1.5 million square feet of space have been converted to self storage from industrial and commercial buildings. This accounts for over a quarter of the city’s overall storage inventory. Investing in convertible properties has proven to be far more cost-effective than purchasing turnkey self storage facilities, with conversion costs averaging $1 per square foot compared to $12 per square foot for existing facilities. This cost advantage is also reflected in Portland’s street rates, where rent in converted properties is 13% lower than in newly built facilities.

The largest converted self storage facility in Portland is located on 28th Avenue, an area known for its eclectic mix of residential buildings, restaurants, bars and boutiques. Originally built in 1967, this property has been transformed into a U-Store facility, offering nearly 310,000 square feet of rentable space to local residents.

Seattle, WA, has 15 self storage facilities converted from warehouses and former factories, totaling 1.1 million square feet and representing nearly a quarter of the city’s total inventory. Despite these conversions, self storage availability in Seattle remains relatively limited, with only four square feet of space per capita. This scarcity contributes to the high cost of storage in the city, with the average unit renting for $182 per month.

Further south on the West Coast, Los Angeles, CA, also sees a substantial portion of its self storage inventory coming from conversions. With a notoriously hot housing market, limited land for new developments and a significant inventory of old industrial buildings, it’s no surprise that local developers are turning to conversions to boost the city’s self storage capacity. Los Angeles has almost 1.5 million square feet of converted space, which make up a significant 17% of the city’s inventory. However, self storage availability in Los Angeles is among the lowest in the nation, with just two square feet of space per capita.

Despite lower interest in conversions in the South, Houston, TX and Memphis, TN repurpose older buildings for more storage space

Southern cities generally have more available land and lower real estate costs, making it more feasible to build new self storage facilities from the ground up rather than repurposing existing buildings. However, Texas’s economic powerhouses, Houston and Dallas, are seizing opportunities to expand storage options for their residents.

Houston, TX, leads the South — and ranks seventh nationally — with 1.7 million square feet of converted self storage space divided across 18 facilities. Despite this, these converted facilities make up only 5% of Houston’s well-supplied market, in contrast to other top cities where conversions constitute a more significant portion of the inventory.

Memphis, TN, and Dallas, TX, ranking 13th and 16th, are seeing 1.5 million and 1.4 million square feet of converted self-storage space, respectively. In Memphis, these conversions account for about 22% of the city’s total inventory, while in Dallas, they represent 11% of the available self-storage space. Atlanta, GA, and Charlotte, NC, round out the top 20 cities for adaptive reuse to self-storage, with under 1.2 million square feet of converted space each.

Cool and unusual self storage conversions: From a WWII pilot training facility and county jail to storage units

Self storage has quietly been a part of our lives for decades, helping us tackle space-related challenges without much fanfare. But recently, this humble industry has found its way into pop culture, earning a surprising “cool” status. Thanks to TV shows, movies and reality TV, self storage has become more than just a place to stash your stuff — it’s now a setting for mystery, drama and intrigue.

Shows like “Storage Wars” have turned the spotlight on these spaces, showcasing the excitement of abandoned storage unit auctions where hidden treasures and forgotten valuables are revealed. In movies, storage units often play a role as secret hideaways or spots to conceal goods, adding an element of suspense that captivates audiences.

Even though real-life self storage might not always match its pop culture image, there are still plenty of fascinating aspects — like some of the unusual conversions we’ve uncovered.

Here’s a look at the coolest self storage transformations, where spaces like a county jail, an ice rink and even an aviation hangar have been creatively reimagined into functional and stylish storage solutions.

• Aviation hangar

A self storage facility that has definitely seen history is this Extra Space Storage store located in Denver, on East Academy Boulevard, in what is now a bustling mixed-use area with plenty of residential and commercial properties. In 1942, when this building was erected, the site was actually a training facility for WWII pilots — and you can still see the original “Hangar No. 2” inscription on it.

• County jail

A former county jail makes an excellent self storage facility — we know for sure that security is top-notch in this Space Squared self storage facility located in Grand Rapids, MI. The county jail was originally erected in 1995. It was rather short-lived as a prison, which should be encouraging for Grand Rapids residents. Nowadays, the former county jail provides over 48K square feet of storage space to locals.

• Bingo place

Bingo, you found just the right self storage unit in a former bingo place located in Overland Park, KS. Apparently, locals are too cool for bingo, as the place was rather short-lived for its initial purpose — built in 2010, it’s now a thriving Corbin Park Storage facility offering Overland Park’s residents almost 22K square feet of lucky storage space.

• Movie theater

With so many streaming platforms at our fingertips and the option to choose from thousands of movies and TV shows literally anytime and anywhere, it’s hardly surprising that movie theaters are not quite as popular as they used to be. And a former movie theater in Hillsborough, NC, originally built in 1979, is now fulfilling its destiny as a self storage facility, providing Hillsborough locals with almost 100K square feet of space to keep their extra belongings.

• Armory

Armories are fortress-like buildings designed to store military equipment and able to withstand a veritable siege — so turning a former one into a self storage facility must be the epitome of safety. Think about it — what better place to keep your precious belongings safe than a building designed to store heavy artillery? You can find just that in West Valley City, UT, where an armory built in 1985 was reformed into an AAA Alpine self storage facility with over 83K square feet of storage space.

• Brewery

With towering ceilings, brick walls and ample interior spaces, a former brewery is basically a self storage facility in disguise, just waiting for a makeover. You can find just that in Baltimore, MD, where a huge brewery dating back from 1885 was turned into a CubeSmart self storage facility that offers city residents an impressive 165K square feet of storage space.

• Banquet hall

Going from chandeliers, long tables and plenty of room for cutting loose on the dance floor to rows of sleek storage units is quite a transition, and one that occurred in Rockford, IL. A 1926 building originally destined to be a grand banquet hall was turned into a grand storage hall with almost 41K square feet of self storage space.

• Ice rink

Speaking of climate-controlled, this Pasadena Public Storage facility was built in 1915 and used to be an ice rink. Nowadays, it no longer sees happy skaters gliding on ice but houses belongings chilling in over 63K square feet of storage space.

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Converting older buildings into self storage facilities is a practical solution for space-constrained urban areas. This approach enables developers to quickly and cost-effectively meet the growing demand for storage while sidestepping many of the challenges associated with new construction. As cities increasingly seek innovative ways to make the most of their existing resources, the trend of transforming older properties into self-storage facilities is poised to gain momentum as a smart and sustainable strategy.

Below, you’ll find a detailed overview of self-storage conversions in 1,126 cities across the country, as well as key data for each market. This includes the size and percentage of converted properties within the total inventory, and the resulting street rates.

Expert opinions

In order to gain deeper insights into the factors shaping real estate development across the country, we consulted experts in the field.

Jim Chiswell, Managing General Partner of Chiswell & Associates, LLC.

What are the key considerations when assessing the feasibility of converting existing buildings, such as industrial and retail spaces, into self storage?

The biggest issue is always zoning. Typically, communities are much more willing to work with someone cleaning up an industrial site to convert it to self storage than a retail space. Elected officials want to see retail zoned property used for retail since they get a portion of the sales tax revenue generated. In most states, sales tax is not collected on self storage rentals, so they only get the property taxes paid with no additional sales tax kicker.

If you are trying to convert a portion of retail space within a shopping center for example, in some cases, there are restrictions within the leases of the properties that prevent a retail space being used for storage. The other retailers want other retailers to help generate more customer traffic. Self storage is not that type of user.

Do zoning regulations and building codes impact the process of converting different types of structures into self storage facilities?

Zoning and building codes ALWAYS impact the conversion process. One primary example is that the upper floors for a self storage conversion require a design loading capability of 125 lbs. live load per square foot. Very few upper floors of office buildings will meet that standard, so you have to add additional support structures that will satisfy the community engineers that the standard is met.

One of the big pluses of converting a retail location into self storage is that you pick up the advantage of not needing the 100-200 parking spaces that typically come with a retail property. I am currently working with one client who will end up being able to sell off three outparcels to others from the access land and parking that he will not need for his self storage conversion.

What challenges are commonly encountered during this process?

The challenges are always area residents who have a negative vision of self storage. When you tell someone that the retail plaza is being converted to 600 or 700 rental units all they think of is traffic backup and having “those kinds of people” who use self storage in their neighborhoods. The truth of course is that our customers are their neighbors!

The issues associated with converting an existing use to self storage changes totally when it is a vacant industry property. This is especially true if the site is a “brownfield” property because there was some negative environment process taking place with the old business. Dealing with another client with this exact type of location. $1.5 million has already been spent by the seller on cleaning up the site. Another $500,000 will be spent to further remove the piping within the building in an environmentally secure method.

Self storage is a perfect use for this type of property since many times contaminated portions of the property can be sealed with paving and no one is at the facility long enough to have any potential for negative health impacts. If you are considering buying this type of property you do not want to take title to the property until you have a “No Action Letter” from the State’s Department of Environmental Protection (or whatever it is called in your State). The letter is proof to your lender or investors that the State is certifying that do additional action is necessary to place the property back into a productive use.

Doug Ressler, Business Intelligence Manager at Yardi Matrix

What is driving the trend of converting existing spaces into self-storage facilities, and what challenges does this adaptive reuse present?

As we've seen in recent years, hundreds of industrial warehouses and big-box stores have been transformed into self storage spaces. However, former department store sites are set to become even more prominent players in this trend. Their convenience and accessibility make them especially appealing to downsizing baby boomers and remote workers looking to create space for home offices.

What’s truly driving this growth is a shift in consumer mindset: people now view self storage as an extension of their homes, which is why we’re seeing a rise in what we call "lifestyle storage". However, it's important to recognize that adaptive reuse presents its own set of challenges, and securing prime real estate locations can be highly competitive in certain markets.

What are the financing options for converting existing buildings into self storage facilities?

There are several avenues for funding when converting existing properties into self storage facilities. These include traditional bank loans, private equity, and specialized real estate investment funds that focus on adaptive reuse. Banks and financial institutions often offer commercial mortgages specifically tailored for these projects, though they typically require a well-developed business plan and evidence that the project is financially sound.

Private equity firms can also play a significant role by investing in exchange for equity, which is an attractive option for projects with promising return potential. Meanwhile, non-recourse lenders, such as debt funds and mortgage REITs, have become more prominent in the adaptive reuse market, offering more flexible terms than traditional banks.

What challenges are commonly encountered during this process?

Many challenges can occur. The initial costs can be high if significant upgrades are needed—like modernizing HVAC systems, improving roofing, or installing fire sprinklers. Competition for prime real estate locations can also be intense in some instances.

We've also talked to David Waxman, who specializes in multifamily conversions, to get a broader perspective on this topic.

David Waxman, co-founder and managing partner at MM Partners, Philadelphia

What are the key considerations when assessing the feasibility of converting existing buildings, such as industrial and retail spaces?

We are primarily multifamily developers, so we look at industrial and office buildings with an eye to converting to apartments with a small ground floor retail footprint, ideally using historic tax credits.  We look for well-located buildings, ideally "by right" zoning, over 100 units, in good condition with reusable infrastructure, if possible (i.e. elevators, electric service, sprinkler, etc.), efficient layouts) and whether the building is interesting (high ceilings, columns, cool back story, historic details, etc.). Lastly, and the most obvious one, the deal has to pencil.

Do zoning regulations and building codes impact the process of converting different types of structures into something else?

Per above we typically look for "by right" opportunities.  Regarding codes, for historic buildings Philadelphia has some leniency on parking and other non-life safety codes that help the process.

What challenges are commonly encountered during this process?

The challenges are typically what's behind the walls you didn't uncover during due diligence and does your budget have cushion to absorb anything material you may find.

Methodology

This analysis was conducted by StorageCafe, an online platform that provides nationwide listings of storage units.

We examined self storage conversion data for 1,126 cities across the U.S. and ranked them based on the total square footage of converted self storage space in each city. We also compared the converted self storage space to the overall storage inventory in each location.

A conversion was defined as a building repurposed into a self storage facility, which is still operational as such today.

Additionally, we analyzed August 2024 self storage street rates in converted facilities versus purpose-built ones.  Sales prices per square foot for properties intended for conversion and for purpose-built self storage facilities were also considered.

The data for this analysis comes from Yardi Matrix, StorageCafe’s sister division, which offers a business development and asset management tool used by brokers, sponsors, banks, and equity sources for underwriting investments in the multifamily, office, industrial, and self-storage sectors.

Fair use and distribution

This study serves as a resource for the general public on issues of common interest and should not be regarded as investment advice. The data is true to the best of our knowledge but may change if amendments to it are made. We agree to the distribution of this content but we do require a mention in return for attribution purposes.