Friday, March 24, 2023

[EXCLUSIVE] Brookhaven Getting New Self Storage Facility

A new self-storage facility is planned for 2719 Buford Highway in Brookhaven.  The facility, which will be primarily visible off I-85 south, is slated to replace an existing two story office building which was built in 1968.  Property records indicate the parcel is about 1.5 acres with the new facility slated to include 727 climate-controlled self-storage units in five stories and approximately 100,000 square feet.    

The new storage facility is less than a half mile from where Atlanta-based Stein Investment Group built a large "Space Shop" self- storage facility at the corner of Lenox Road and Buford Highway in 2017.  The facility was subsequently sold as part of a portfolio transaction to Salt Lake City-based Extra Space Storage (NYSE: EXR).  

ToNeTo Atlanta reported March 7 that Stein had broken ground on a new self-storage facility on Blackland Road in Tuxedo Park in Buckhead.  The new facility was seen as the less of two evils when neighbors were first asked to consider a significant townhome development.  

As with any post we do on self-storage facilities, many comments address the amount of stuff people store and question why people don't get rid of stuff rather than paying to store it.  It's often said people end up with a storage unit for one of four "D's:" Death, Divorce, Dislocation and Downsizing.  To that end, when the "stuff" is out of sight and out of mind, its far easier for a person to end up at perhaps the fifth "D" distraction, and not deal with it.  

The real reason there are so many self-storage facilities is because they are a really great business.  According to Storage Cafe, a publication which tracks the self-storage industry, the Atlanta-Sandy Springs-Alpharetta MSA (Metropolitan Statistical Area) was the third highest MSA in the country for self-storage construction in 2022.  Our local area added 1.2 million square feet of self-storage space, a bit behind Phoenix-Mesa-Chandler, Arizona with 1.8M and national leader New York-Newark-Jersey City, NY-NJ-PA with 3.4M.  

Overall, the U.S. boasts a total inventory of more than 1.7 billion square feet of self-storage space with the Atlanta MSA accounting for more than 41 million.  

To be sure, rents did show some signs of turbulence with average rents for a standard 10 x 10 unit declining both locally and nationally.  The average self-storage street rate for a 10x10 storage unit is $126/month, down 3.1% year-over-year. In the Atlanta MSA, the average cost of a 10x10 storage unit is $140/month, a decrease of 8.5% compared to last year.  Both the national and local rates were as of February 2023.  

Storage Cafe offers several other insightful statistics which can be found here.  

Are you surprised to see so many self storage facilities continue to open?  Do you currently have a storage unit?  What type of business do you think Brookhaven is in need of?   

Please share your thoughts below  


Anonymous said...

That office building must have been pretty impressive back in the day. Not surprised about storage units. People use them. I don't have one but I feel like my house has become a storage unit.

Anonymous said...

that's a classic piece of Atlanta architecture; I'm assuming it will not be preserved.

Anonymous said...

.... So you just jump straight down to leave a stupid comment without reading the article? I'm assuming :)

Anonymous said...

considering that the article says the storage will replace this classic building, it's a safe bet that the building will not be preserved. But be sure to leave more stupid comments 10:57.

Anonymous said...

Um, time to shelve" the above disagreement.

Anonymous said...

Agreed. Some people have way too much free time on their hands.

Carlos said...

I was born in Greenwood,Ms. and I grew up with shipleys.So many memories.I currently live in McDonough,Ga. in Henry County Ga. Youmust set a new location in McDonough,Ga

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