With both investor interest and consumer demand high, Edison Properties, which owns Manhattan Mini Storage, was said to be exploring the sale of its division, which has 18 locations and 3.1 million square feet, for an estimated $3 billion, or nearly $1,000 per square foot, Bloomberg News reported.Įdison declined to discuss the sale, but the price tag is unsurprising, Mr.
The steady income and expectations of a continued reliance on storage even when the pandemic wanes have led to consolidation in the industry, and prices are fetching premiums. Improvements in those areas have resulted in 95 percent occupancy, in line with the current market. Storage-industry technology is drawing entrepreneurs like Zack Widmann, the founder of ZHW Properties, who with a partner bought three facilities that “had no tech, no websites and no rent increases” in several years. “Why advertise if you don’t have the units?” Mr. And improved technology allows for smartphone reservations as well as contactless operations with fewer on-site employees.Įven the cost of advertising, now largely online and through comparison aggregator sites like, have declined, because high occupancy rates have decreased the need.
The structures tend to be sturdy if spartan. Operating costs, including taxes, electricity and some labor, have been low compared with other real estate classes, like hotels and senior housing.
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