Self-storage builder Storage Deluxe has acquired a development site in , which will be operated by Storage Deluxe builds and owns—but does not operate—storage properties. Most of its portfolio is managed by $6 billion public storage company CubeSmart. The firm has developed dozens of storage properties in the city in recent years. The company just finished a nearly 250,000-square-foot development at 2880 Exterior St. in the Marble Hill section of the Bronx—a location that is also being operated by CubeSmart. Two years ago the city passed rules requiring that self-storage facilities secure a special permit in order to operate in industrial business zones, designated areas preserved for manufacturing and industrial businesses. The rules were passed out of concern that storage spaces were supplanting those businesses while creating few jobs. But developers like Storage Deluxe are free to create new storage spaces outside those zones. Executives at the company say there continues to be strong demand in the city for new locations. East Williamsburg and Bushwick have seen a surge in residential and commercial development in recent years, driving demand for storage spaces. "With all the residential and commercial activity, there is a growing need for storage in Brooklyn," said Andrew Ehinger, an executive at Storage Deluxe involved in leasing and acquisitions at the company. "The rule of thumb in the storage business is that within a 3 mile radius there's demand for 7 square feet of storage per person. In Brooklyn that adds up to millions of square feet of demand, and when you consider supply, there's quite a deficit."
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Self-storage builder strikes deal for $100M development
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