All Storage courts $1B-plus sale with CBRE

Self-storage company operates 50 facilities in Texas, three in Oklahoma

All Storage CEO Jay Schuminsky and CBRE CEO Bob Sulentic (All Storage, CBRE)
All Storage CEO Jay Schuminsky and CBRE CEO Bob Sulentic (All Storage, CBRE)

How many self-storage units could $1 billion buy? The operators of All Storage appear poised to find out.

The self-storage company runs 50 facilities in Texas and three in Oklahoma, but the operator appears ready to box up ownership. The company is exploring a sale that could net more than $1 billion, according to Bloomberg.

The company has started to solicit interest from potential buyers with assistance from CBRE in the sale exploration, Bloomberg reported, citing people with knowledge of the matter. The outlet didn’t identify any potential buyers.

Self storage has proven to be a strong business during the pandemic as individuals stuck under lockdown measures and businesses with vacated offices sought more space.

Texas is a particularly strong market for self storage. All Storage owns a cluster of 14 facilities in the connected Fort Worth metro, where nearby Dallas saw the biggest growth of self storage construction from 2011 to 2020 when 16.2 million square feet were added to accommodate an influx of 1.2 million residents.

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Two other Texas cities ranked in the top 10 of self storage construction during the previous decade. Houston ranked third, adding 14 million square feet, while Austin — the nation’s fastest-growing major metro — ranked ninth, adding slightly under 6.5 million square feet of self storage space.

Overall, 295 million square feet of self storage was built nationwide between 2011 and 2020, according to RentCafé.

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[Bloomberg] — Holden Walter-Warner