Public Storage announced on November 1 its acquisition of 56 facilities from All Storage for $1.5 billion, accounting for 7.5 million net rentable square feet. 52 of them are in Dallas-Fort Worth, Texas. Public Storage is the largest self storage brand in the US — and the world — and this deal follows hot on the heels of Simply Self Storage’s recent acquisition of storage facilities in Houston and Dallas.
With this purchase, Public Storage increased its Dallas Metro portfolio to 15.5M square feet of rentable storage in 172 locations. Three of the other properties are in Oklahoma City while a fourth is in Killeen, Texas. Many of these properties were built recently, a significant factor contributing to their value. Overall, they had a 75% occupancy rate during the third quarter of 2021, offering tempting growth potential.
“The acquisition is a direct reflection of how the team at Public Storage is committed to driving growth through our four-factor platform, which includes acquisitions, development, redevelopment, and third-party management,” said Joe Russell, Public Storage Chief Executive Officer.
Since the start of 2019, Public Storage spent $6.3B on these factors, growing by 22% and adding approximately 36M square feet of rentable storage to its portfolio. Even in the difficult year of 2020, the company reportedly purchased 46 storage properties amounting to roughly 4.7M square feet — more than any other company bought — spending a total amount of $460M, the second highest sum that year.
According to the latest Yardi Matrix data, Dallas residents have a generous 9.8 square feet of storage per person and the average street rate for a non-climate-controlled storage units in Dallas is $102. The prices for this size unit increased 10% year-over-year for both standard and climate-controlled versions, somewhat more than in the nation’s large coastal cities. This growth pattern fits the company’s aim, stated by Joe Russell, to acquire and develop properties in desirable markets.
Nationally, Public Storage owns 186M net rentable square feet of space in 39 states.