A growing population and a subsequent spike in real estate development have led to more demand for self storage space in Atlanta. This has prompted several real estate companies to build, expand or acquire facilities under their respective portfolios.
To put this market activity into perspective, STR examined its development database to gauge the level of supply growth Atlanta will see over the coming year.
There are 596 self storage facilities in the Atlanta metro market and roughly 58% of those facilities reside in a grouping of five counties: Cobb County (87 facilities), Fulton County (81 facilities), Gwinnett County (78 facilities), DeKalb County (70 facilities) and Clayton County (32 facilities).
Currently, STR is tracking a total of 39 self storage projects in various stages of development in Atlanta. This total includes unconfirmed projects that have not yet been zoned or approved as well as projects under construction or expansion. Of these projects, 30 are new construction and nine are expansion projects. The estimated average net rentable square feet (NRSF) of these projects is 75,000 NRSF.
STR expects the majority of these projects to be completed next year. If all 39 development projects are completed, Atlanta’s facility supply would grow by 7%.
In order to ascertain the impact of new supply, we look specifically at Fulton County, which will house a significant share of the new supply in the pipeline. Fulton County is the most populous county in Georgia with an estimated population of approximately one million and represents the second largest count of self storage facilities in the market after Cobb County. Of the 81 self storage facilities in Fulton County, 52 are owned or managed by REITs – Public Storage maintains the largest presence. The estimated existing NRSF in Fulton County is approximately 5.1mm, and an in-depth analysis estimates the NRSF per capita at 5.1. The average unit count and number of buildings for existing facilities in Fulton County is 530 and five, respectively, with a median facility age of 25 years. The average NRSF per existing facility is approximately 63,500.
STR is tracking a total of nine new development projects in Fulton County with a total estimated NRSF of 675,000. If all of these new facilities open, the inventory of NRSF in Fulton County would increase by 13%, and NRSF per capita would be 5.8.
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 SSInfo@STR.com.
About the Authors
Anne Hawkins leads new business initiatives in the Sector Analysis division of STR. Anne can be reached at AHawkins@STR.com or 615.824.8664 x 3341.
Kwabena (Kobe) Akuffo Owoo is a Research Analyst at STR. He can be reached at KAkuffoOwoo@STR.com or 615.824.8664 x3009