The revenue generated by the global self-storage market has long been on the rise. But one new study is predicting higher revenues than even the most optimistic brokers would predict. This new research predicts that the self-storage niche will boast an estimated value of a surprising $83.67 billion by 2031.

That would represent a compound annual growth rate of 5.4% from 2024 to 2031, according to a May 15 report from Coherent Market Insights.

Coherent Market Insights reported that the global self-storage market continues to see high growth thanks in part to the development of mini storage spaces. Mini storage units usually range from 25 to 1,000 square feet. Customers use them to store items such as excess luggage, seasonal equipment, vehicles or bicycles.

As new supply enters the market, consumers continue to fill these self-storage units. Coherent reported that in 2024, the global self-storage industry genreated $57.76 billion in market revenue. That would be dwarved, though, if the value of this industry does reach the $83.67 billion figure predicted by Coherent.

Another factor fueling growth in the self-storage market is the enhanced development of climate-controlled storage units, Coherent said.

Climate-controlled units, which help to protect items from humidity, excess heat or cold, are in high demand for customers looking to store delicate items such as documents, photos, electronics and other goods susceptible to climate variations.

Busy lifestyles and small living areas have also increased the need for secure and accessible storage services, something that is fueling the construction of climate-controlled self-storage units across the globe.

With increasingly small household sizes and limited storage solutions at home, the demand for portable and furniture-storage units is also rising. These units provide flexible and movable storage options for daily-use items, furniture, seasonal goods and other belongings. Leading self-storage service providers are focusing on developing portable storage containers, cabinets and mobile shelving units to cater to the changing needs of customers, Coherent reported.

Demographic changes are powering the growth of the self-storage market, too. Millennials are switching jobs and homes more frequently than did previous generations. They also value flexibility and experiences over possessions. As a result, more millennials are opting for self-storage units to store their unused goods and avoid the burden of maintaining excess inventory, Coherent reported.

Coheren’s report also pointed to the many small and medium-sized businesses that are using self-storage for archiving records, storing inventory and housing equipment. Because office space is costly, these businesses are using storage units to free up their office space and reduce rental costs.

Some businesses also use storage for temporary storage of assets when they are shifting office locations. The increasing use of storage by businesses for flexible space and recordkeeping is opening new avenues of growth for self-storage providers.

Coherent reported that the North America region is expected to hold a dominant position in the self-storage niche, with the United States alone accounting for more than 70% of the regional market. Key growth drivers include space constraints in urban regions, higher disposable income and busy lifestyles, according to Coherent.

Hines and Trez Capital announced plans for Northspur, a 608-acre master-planned community east of Dallas in the city of Terrell, Texas.

Local city officials joined Hines and members of the project team for an official groundbreaking celebration, marking a pivotal moment in the development of Terrell’s first major master-planned community.

Northspur will consist of approximately 1,500 single-family homes with a variety of lot sizes to accommodate diverse preferences.

The development is meticulously planned to include a range of amenities, including a custom amenity center, which will serve as the central gathering space for residents. Set against the backdrop of a scenic pond, this vibrant community hub will feature a large swimming pool with a dedicated children’s pool area, shaded lounge areas for relaxation and socializing, a playground and an open play area.

The initial phase of Northspur consists of approximately 210 lots, which will be constructed by M/I Homes and Impression Homes. Homes will be an assortment of sizes and styles, with fresh design and innovative craftsmanship. This variety ensures that potential homeowners can find options that suit their unique tastes and needs.

Strategically located adjacent to US-80, Northspur will offer residents the tranquility of suburban living while maintaining easy access to the bustling Dallas-Fort Worth metroplex. This prime location is ideal for individuals and families seeking a peaceful residential setting without sacrificing the benefits of city proximity. The community’s location also provides easy access to local parks, lakes, and other recreational amenities, further enhancing the quality of life for residents.

Hines acquired the land for Northspur in May 2021 and has since been engaged in infrastructure development, including the construction of roads and utilities. The delivery of the first phase of lots is on schedule for the second quarter of 2024, marking a significant milestone in the project’s timeline.

Sansone Group, in partnership with Principal Asset Management, broke ground on the Austin Hills Commerce Center in Austin, Texas.

This multi-phase project spans +/-134 acres of land and is poised to accommodate over 1.35 million square feet of industrial buildings. Strategically located just off Highway 130, 11 miles from downtown Austin and a mere five minutes from the 4.3 million square foot Tesla Gigafactory, the development promises prime accessibility and potential for growth.

The project will include six state-of-the-art Class-A buildings with unmatched building depths and trailer parking, comprising a total of 1,356,760 square feet of industrial space that can accommodate tenants of all sizes.

Backed by Principal Real Estate, the dedicated real estate investment team of Principal Asset Management, this venture underscores a commitment to innovative development and strategic investment. With Principal Asset Management managing $554 billion in assets for 800 institutional clients as of March 31, 2024, the collaboration represents a significant step towards unlocking the full potential of Austin’s industrial landscape. 

Sansone Group and Principal Asset Management are excited to work with Burton Construction who will lead the design and construction of the new industrial center and Stream Realty who will handle the leasing of the project.

Are investors eager to sink their dollars in retail property? That depends on how you look at it.

According to the first quarter 2024 multi-tenant retail snapshot released May 7 by Northmarq, the U.S. multi-tenant retail sector saw $11.5 billion in investment sales during the first three months of 2024.

That is up 7.8% from the fourth quarter of 2023. That sounds good. But when you compare investment sales activity in the retail sector to the first quarter of 2023? Sales volume in the first quarter of this year was down 18% on a year-over-year basis. That doesn’t look as good.

But what if you compare multi-tenant retail sales activity today to the sluggish months at the height of the COVID-19 pandemic? The retail sector is attracting far more investment sales actvity today, Northmarq said in its snapshot.

In another key number from Northmarq’s report, the overall average cap rate for multi-tenant retail properties stood at 7.14% in the first quarter of 2024. That is up 12 basis points from the fourth quarter of 2023 and 42 from the same period one year earlier. Northmarq reported that the average cap rate for multi-tenant retail in the United States is the highest it’s been since the middle of 2014.

Despite this, deals are still closing. Northmarq said that the last year has seen a return of foreigh capital to the U.S. retail sector, with international buyers making up 10% of the market’s activity in the first quarter.

On a more negative note, institutional investors are still holding onto their dollars. Northmarq reported that these larger investors captured just 3% market share in the multi-tenent retail sector during the first three months of the year.

Public REITs have picked up some of the slack, with Northmarq reporting that these trusts reached 27% market share in the first quarter of 2024. That’s the highest market share that REITs have captured in the multi-tenant retail sector in 10 years.

Private investors remain the most active buyer group for multi-tenant retail, accounting for more than half of the activity in this sector in the first quarter.

Co-developers Lincoln Property Company, Phoenix Property Company and DivcoWest announced that international law firm O’Melveny & Myers LLP has signed a lease at The Republic, a 48-story office tower under construction in downtown Austin. Texas.

The office tower broke ground in 2022 and is now nearly 50% leased, more than a year before it is scheduled to open in mid-2025.

O’Melveny is a global law firm with more than 800 lawyers in 18 offices across three continents. The Los Angeles-founded firm opened its first Texas office in Austin in 2021 and has continued to expand in Austin, Dallas, and Houston.

O’Melveny is the second global law firm to sign a lease in The Republic.

Kirkland & Ellis LLP has committed to occupy 137,000 square feet. Additionally, Austin-based Vista Equity Partners has leased 200,000 square feet.

Designed by Duda Paine Architects, The Republic will offer sweeping views of Lady Bird Lake and a direct connection to Republic Square Park – the building’s historic namesake. In addition to being the only building that opens to a full block of park space in the Central Business District, every office floor of The Republic will feature a 750 square foot private terrace, further connecting tenants to Austin’s distinctive outdoor lifestyle.

Ground-level elements in the building will include a 20,000-square-foot public plaza with an outdoor bar and 16,585 square feet of ground floor retail space. Drawing in the outdoors throughout the building, the 19^th-floor amenity level boasts more than 50,000 square feet of indoor-outdoor space, including conference rooms, fitness center and spin room, club room with a lounge and bar, and a 25,000 square foot outdoor terrace covered by architectural shade canopies.

The designers emphasized the health and wellness of the office tenants and guests by incorporating touchless access technology, enhanced air-filtration systems, and the pursuit of WELLv2 Core Certification, WELL Health-Safety Rating, LEED Gold Certification, and Austin Energy Green Building Program. Additionally, those who commute by bike will have access to a private elevator, which will take them directly to secure storage for nearly 350 bicycles, as well as a spa-quality locker room and showers.

Midway’s East River today announced the sale of a prime tract within the transformational mixed-use development in Houston to Anton Paar USA.

The global leader in precision instruments has acquired a site at the southwest corner of Clinton Drive and Meadow Street, where it plans to establish its new South Region headquarters.

Anton Paar USA, a subsidiary of the Austria-based Anton Paar Group, is renowned for its development, production, and distribution of highly precise laboratory instruments and process measuring systems, as well as providing custom-tailored automation and robotic solutions. Currently located in an industrial building on World Houston Parkway, the company plans to construct a new three-story, 30,000 square-foot facility at East River. This modern building will include 12,500 square feet of office space, 12,599 square feet dedicated to technology, lab, training, and conference facilities, and 5,000 square feet for distribution and shipping.

The new Anton Paar headquarters will be situated just east of The Studios at East River, where The Office of James Burnett Landscape Architects (OJB) acquired one of the 10,000 square foot Studio buildings for their Houston offices. This proximity to leading design firms and other innovative companies at East River fosters a collaborative environment that is central to the vision of the development.

In addition to Anton Paar’s new facility, Midway is also developing the new headquarters for Port Houston at East River. This 95,000 square-foot office building, along with a dedicated parking garage and skybridge, underscores East River’s role as a catalyst for economic growth and community development in Houston’s east side.

Anton Paar was represented by Chad Bolling with Colliers International Houston, Inc., while David Hightower, CCIM, Executive Vice President with Midway, represented the seller.