The Dallas – Fort Worth metroplex has received much attention recently as a market facing potential overbuild issues as too much new supply enters the MSA and many operators rightly have expressed concerns about the volume of development. STR, a leading provider of data and information services, is building a database of self storage development occurring nationwide to address these signs of new supply entering the market.
After in-depth research on the Dallas – Fort Worth market, STR has identified a high level of self storage development activity in Dallas. Currently, STR is tracking a total of 125 self storage projects in some phase of development (including unconfirmed projects that have not yet been zoned/approved through projects under construction). Of these 125 projects, STR expects 61 projects to be completed (including the Approved, Permitting, and Under Construction phases). It is undetermined whether the remaining 64 projects, which are in the Proposed and Unconfirmed development phases, will be completed. The size of the average facility under development in Dallas (based on a sample of 70 projects) is approximately 70,000 net rentable square feet. The largest project tracked by STR in the metroplex is an All Storage facility with a total square footage of nearly 240,000.
Working under the assumption that all 125 development projects in Dallas will be completed, this development pipeline would represent 13% growth in the Dallas storage supply. Demand growth for storage in the market is rumored to be strong; however, it remains to be seen whether this level of supply growth can be supported. STR does not expect all of these facilities to be completed given the early stage of many of these projects, but current market occupancy levels could slip if a high percentage of these projects are completed.
If you have an interest in purchasing a listing of these facilities under development or existing facilities in markets across the United States, please contact STR at firstname.lastname@example.org.
About the author
Anne Hawkins leads new business initiatives in the Sector Analysis division of STR. She is responsible for managing and implementing all aspects of sales and operations across this division. Previously, Anne worked in private equity and investment banking. Anne can be reached at email@example.com or 615.824.8664 (x3341).