The capital of Tennessee, known for its legendary country music venues, has also become known for its surge in real-estate development, particularly in the self storage sector.
The Nashville Metropolitan Statistical Area (Nashville-Davidson-Murfreesboro-Franklin) is the 36th largest MSA in the U.S. with approximately 1.9 million people, according to 2016 U.S Census Bureau estimates. This total figure represented a 12% spike in population from six years prior, making Nashville one of the fastest-growing MSAs in the nation. This growth in population can be ascribed to present economic conditions as well as the emergence of Nashville as a top leisure destination—the area welcomed a record 13.9 million visitors in 2016, according to the Nashville Convention & Visitors Corp.
In the self storage sector, square feet per person in Nashville is lower than the national average, depicting an undersupplied market. As market conditions evolve, STR analyzed its database to determine the current and forecasted landscape of Nashville’s self storage industry.
STR is currently tracking 259 open and operational self storage facilities in the Nashville MSA with 39% being chain-affiliated and 61% managed independently. StorPlace has the largest chain presence followed by CubeSmart Self Storage and Public Storage. On a county level, Davidson County represents the largest share (27%) of the 259 open and operating self storage facilities. The net rentable square feet (NRSF) per capita for Nashville MSA is approximately 5.7.
Earlier in the year, STR tracked 67 self storage projects in various phases of development in the Nashville MSA. This total has increased to 83, which represents 24% growth in the MSA’s pipeline. The average size of a facility under development is approximately 51,000 NRSF with an average of five buildings and 600 units per facility. The largest development project in the MSA is a facility with an estimated 115,000 NRSF.
On a county level, a greater number of pipeline developments are located in Davidson County, which grew by approximately 58,000 (+9%) residents from 2010 to 2016. Further analysis indicates that most pipeline developments are in areas with an existing self storage footprint. The majority (69%) of the total pipeline developments in the MSA are in zip codes with at least one existing self storage facility.
With favorable self storage macroeconomic operating conditions, STR expects more than half (44 projects) of the total pipeline developments to be completed in the upcoming year. In a scenario where all 83 self storage projects are completed, STR estimates a total of 4.3 million NRSF entering the Nashville MSA increasing current NRSF per Capita from 5.7 to 8.0.
Individuals and organizations interested in purchasing a listing of these facilities under development or existing facilities in markets across the country should contact STR at firstname.lastname@example.org.