Tracking L.A. self storage development, larger supply growth in Orange County
It is no secret that real-estate development is on the rise in Los Angeles, particularly south of L.A. proper in the self storage sector. After all, with an estimated population of 13 million, mega media industries and other tourist attractions, Los Angeles welcomed a record 47 million visitors in 2016—that number is expected to grow towards 50 million by 2020 according to city officials.
That number also means more real-estate development is on the horizon. STR, a leading provider of data and information services, took a look at its database to analyze the current makeup of self storage supply in Los Angeles and how new supply may affect performance in the sector.
There are approximately 850 self storage facilities in the Los Angeles market with about two-thirds of facilities associated with chains. The other one-third represents the independent segment. Public Storage, the largest self storage brand in the country, also has the largest presence in the Los Angeles market.
Currently, STR is tracking a total of 35 self storage projects at various stages of development in Los Angeles. This total includes unconfirmed projects that have not yet been zoned or approved as well as projects under construction, expansion or renovation. Of these projects, 27 are new constructions and eight are expansion projects. Assuming the completion of all currently tracked projects, Los Angeles’ self storage supply would grow by 4%.
STR also analyzed segmented data to ascertain the impact of new supply on the self storage markets in Los Angeles County and Orange County, respectively.
Los Angeles County is the most populous county in the United States with an estimated population of 10 million and represents the largest count of self storage facilities in the state. Currently, STR is tracking 609 opened self storage facilities in Los Angeles County. This represents approximately 70% of existing supply in the MSA. STR is tracking a total of 14 development projects in Los Angeles County with four projects under expansion and 10 under various stages of development. If all 14 projects are completed, self storage supply in Los Angeles County would grow 2%.
Orange County, the third most populous county in California, with an estimated population of three million, currently houses 239 self storage facilities and represents roughly 30% of existing supply in the MSA. There are 21 development projects in Orange County. Of these projects, four are in the expansion phase, while 17 are under various stages of development spanning from planning to under construction. If all 21 projects are completed, we would see roughly 9% growth in supply in Orange County. There is a particular concentration of development projects between Newport Beach and Irvine.
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 email@example.com.
About the authors
Anne Hawkins leads new business initiatives in the Sector Analysis division of STR. Anne can be reached at firstname.lastname@example.org or +1 (615) 824 8664 x.3341.
Kwabena (Kobe) Akuffo Owoo is a Research Analyst at STR. He can be reached at email@example.com or +1 (615) 824 8664 x.3009.