The self storage business in San Antonio is following a rather counterintuitive pattern. With overall street rates declining steadily, the amount of self storage projects—either completed or under construction—continues to be among the highest in the nation.
What is it then that drives developers to keep a steady flow of new self storage facilities? The continuous influx of population into the area seems to play a pretty big role.
Large Number of New Arrivals Boosts Local Self Storage Industry
While in 2017 the San Antonio metro area welcomed 30,302 new transplants, in 2018 another 28,152 moved to the area, representing a 1.8% Y-o-Y increase. In fact, out the 383 metro areas in the US, the San Antonio-Braunfels metro is situated high at the top of the list of metro areas that show some of the most substantial arrivals for the 2017-2018 time period (it ranked 24th out of 383 in 2018 for fastest-growing metros), according to information provided by the US Census.
Since most of the people who change residence cite using a storage unit when moving as the main reason for renting one in the first place, it is sensible for developers to map out their new self storage projects according to estimates of population fluctuations in the area. Additionally, the low unemployment rate, currently at 2.9%, is another known barometer of economic health, indicating a thriving metro.
Growing Self Storage Construction: Renters’ Gain, but Owners’ Pain
San Antonio is on a steady growth slope at 5.2% in 2019. Within the same state, Austin (7.5% of stock) and Houston (2.9% of stock) have seen their development pipelines even out throughout 2019, according to data from Yardi Matrix. Even though San Antonio has seen a slower development rate compared to the national average, now at 9% per Yardi Matrix data, new storage facilities were built at a steady pace.
While in 2017 the city saw five new additions to the list of storage facilities, the total property count of new storage facilities doubled in 2018, in response to increasing market demands. Even though it showed a deceleration compared to the previous year, the growth of new developments continued in 2019, with 8 new facilities built, having a total of 639,965 square feet in rentable space. The same steady trend of growth will continue in 2020, as 5 new developments are under construction, totaling up to 372,650 square feet.
The ongoing stream of storage units could potentially cause some concerns among storage space providers, since increased supply tends to cause a decrease in prices. This market boom couldn’t be more beneficial for renters, though. With a wealth of options at hand, those interested in renting self storage units in the San Antonio area can reap the benefits of discounts or other incentives such as additional space or upgrades to climate-controlled units as a result of the increase in local self storage inventory.
Steady Decrease in Y-O-Y Street Rates Pulls the Brakes on Recent Self-Storage Development Boom
Monthly street rates for self storage in San Antonio sit somewhere around $97 for a standard unit, a 2% decrease year-over-year. San Antonio’s rent evolution falls in line with the national trend, which indicates a 2.5% decrease in street rates Y-o-Y, reaching $114 for 10X10 standard non-climate-controlled units in 2019. Meanwhile, of the Texas markets, Houston saw the most significant year-over-year decline – 3.4% – as of November 2019 ($84 per unit).
Similarly to what happens on the national front, rent rates for storage units in San Antonio are dropping due to the steady stream of new developments. Faced with strong competition, developers now show tempered optimism towards new construction projects and there is a visible slowdown on the local self storage landscape. Let’s look at 5 of the largest facilities that landed on the market in 2019.
1. CubeSmart Self Storage – 1426 North Pan Am Expwy, San Antonio, TX 78208 — 117,092 sq. ft.
Currently servicing Pearl District and Broadway Corridor, this CubeSmart Self Storage facility is located at the junction of major local highways, with N PanAm Expy running parallel to the property. The new development occupies 1.03 acres and encompasses 123,255 square feet in total, with 117,092 square feet of rentable space. Amenities include flexible gate hours and office hours, and its convenient location makes it easily accessible. An on-site manager is also available to assist you with your storage concerns. Additionally, this storage facility features 24-hour video recording, bright lighting, climate-controlled units, and parking.
Within a 3-mile radius the Bexar county facility services around 121,638 residents alongside 5 other storage facilities – a welcome addition to an area with an increasing population, according to data provided by Yardi Matrix. The entire area offers in total around 432,833 net square feet in rentable space. A standard 10X10 storage unit goes for around $1.32 per square foot in this area
2. LifeStorage – 10126 Potranco Road, San Antonio, TX 78251 — 101,022 sq. ft.
Located in the Potranco neighborhood, the LifeStorage storage facility is not far from Loop 1604 and about 15 minutes away from the University of Texas at San Antonio. Spread out on 3.74 acres, the property encompasses 134,696 square feet in total. The rentable area covers, however, 101,022 square feet. Some of the features include drive-up access to the gate, a parking area and security surveillance. Additionally, customers can choose from climate-controlled units if they are interested in this type of amenity. The facility comprises one multi-story building with an on-site manager available for assistance. Truck rentals are also available.
This area is highly populated, with 108,245 people officially residing in Potranco – with a median age of 31. Additionally, there are 14 other storage facilities in a 3-mile radius totaling about 914,383 net rentable square feet. In this neighborhood, residents pay about $0.94 per square foot for a standard 10X10 storage unit
3. Extra Space Storage – 12806 Vista Del Norte, San Antonio, TX 78216 — 93,072 sq. ft.
Another storage facility addition to the San Antonio self storage landscape, the Extra Space Storage facility is adjacent to the Vista del Norte neighborhood and a mere 5 miles away from San Antonio Airport. The property comprises 2.4 acres and encompasses a total of 124,096 square feet, with 93,072 of these being rentable space. Amenities include drive-up access to a gated area and parking spaces for customers. The four-story building also features security surveillance and climate control for specific units.
About 90,992 people live in this area within a 3-mile radius. There are 19 other storage units within the same range, with a total of 1,056,287 square feet of rentable space, according to Yardi Matrix. The self storage cost for a 10X10 standard unit is about $1.00 per square foot for this neighborhood.
4. LifeStorage – 3533 Roosevelt Avenue, San Antonio, TX 78214 — 96,316 sq. ft.
The LifeStorage facility is a new development built in 2019 meant to service the Stinson Airport Vicinity, bordering the Mission San Jose neighborhood as well. The facility is also about 15 miles away from the San Antonio International Airport.
The new development occupies 6.99 acres and encompasses 96,316 square feet in total. The actual rentable space covers 91,500 square feet. There are three buildings of one story each at this property. Features consist of drive-up access to a gated area with parking provided. Additionally, the property benefits from video surveillance and offers climate-controlled units. The facility also offers truck rental services. Customers are able to address their storage concerns and questions to the on-site manager.
The LifeStorage facility is a welcome addition to this highly-populated area as it will service around 110,024 residents alongside 9 other storage facilities. The entire area offers a total of around 493,411 net square feet in rentable space. Rates for a standard 10X10 storage unit in this area go at around $1.20 per square foot.
5. Extra Space Storage – 20523 Stone Oak Pkwy, San Antonio, TX 78258 — 94,902 sq. ft.
The last facility to make our list is another Extra Space Storage facility that is situated in the close vicinity of Highway 281 and Loop 1604. The 2019 facility covers 2.56 acres and encompasses 94,902 square feet in total. The two buildings on the property together offer 71,176 square feet of rentable space. The features of the property consist of drive-up access, security surveillance and parking. In addition, climate control is also available. An on-site manager will be able to assist current and prospective customers.
The storage facility addresses the storage needs of about 70,000 people in an area with high-density. There are 10 other storage units in the same area, offering a net total of 755,803 rentable square feet. For a standard 10X10 standard unit, the average self storage rent per square foot hovers around $1.00, according to Yardi Matrix data.
To browse all self storage listings in San Antonio, check out RENTCafé.com.