19 Sep Dallas Population Growth Increases Self Storage Usage
Self storage in Dallas, Texas, has become a precious commodity since the beginning of 2014, and a booming population in the suburbs of Frisco and McKinney might just be one of the contributing factors.
Both Frisco and McKinney claimed spots on the 2012-2013 U.S. Census 15 Fastest-Growing Large Cities of 50,000 or More list released in May 2014 and have seen steady population growth since 2010. Coincidentally, storage facilities in Frisco and McKinney have seen rising occupancy rates that mirror this growth.
According to Storage.com’s data, a McKinney storage facility in the 75070 zip code climbed from 90.5 percent occupancy in 2013 to 99.3 percent occupancy in 2014. Another self storage facility in McKinney was sitting at 55.8 percent occupancy in 2013 and is approaching full capacity at 99 percent occupancy for 2014. The same happened with a Frisco storage facility in the 75034 zip code, which leapt from 58.8 percent occupancy in 2013 to 98.8 percent occupancy in 2014.
“In the self storage industry, population growth makes a big impact in occupancy percentages,” says Cory Horne, Chief Operating Officer of Advantage Storage, which operates storage facilities in Texas and Oklahoma. “More people moving into the area means better capture rates. Most of the time, self storage locations have a three to five-mile radius where they are pulling their customers from.”
Kenneth Cox, a broker with DFW Urban Realty, which works with buyers and sellers of apartments, townhouses, condos, houses, and more throughout the Dallas-Fort Worth area, believes more people are moving into the area because of the lifestyle offered in suburbs like Frisco and McKinney.
“Inventory is low, and demand is high, which is increasing home values in Dallas, Texas,” says Cox. “The [Dallas-Fort Worth] area offers a great place with many different housing options, including suburban and urban living. Whether you’re in an urban or suburban area, you will be close to fine dining, shops, and local attractions.”
Cox says many suburban areas like Frisco and McKinney have added their own “urban districts” to attract new residents. These districts often have mid-rise and high-rise apartment and condo buildings with easy access to commercial properties, including retail, office, and restaurant spaces.
Amelia Chappel, realtor with Nu Home Source Realty in the Dallas-Fort Worth area, has a different idea about the population growth. She believes employment opportunities in the Dallas area are driving new residents.
“While I’m seeing quite a lot of out-of-state buyers moving here primarily for employment, I have a good percentage of buyers [who] are relocating to the Dallas area from other parts of Texas due to the economy and employment opportunities,” says Chappel. “Demographic growth is fairly diverse. We have a lot of families with children, empty nesters, and retirees, as well as young professionals. I expect this trend to continue due to our lower cost of living and mild weather.”
In both situations presented by Cox and Chappel, residents often encounter a lack of storage space. Perhaps this is where the rising self storage occupancy rates in Frisco and McKinney are coming from.
When residents downsize from large homes to move in to trendy apartments and condos in urban districts, they usually don’t have room for all of their belongings. In this case, they can turn to storage facilities in Dallas and move unnecessary furniture, seasonal clothing, and other items not used on a daily basis into a storage unit to gain additional space at home.
Dallas storage units can help those relocating to Dallas, Frisco, or McKinney because of employment opportunities, too. Since relocating for work can sometimes mean moving to the area before a new home is considered “move-in ready,” many residents will stay in a hotel or with family until their homes are ready. Unfortunately, in this situation, furniture, appliances, and boxes don’t have a place to go. Here, a 10×20 or 10×30 storage unit is a viable option, as it allows those who’ve relocated to store all of their household belongings temporarily.
Though occupancy rates are up because of the growing population in Dallas suburbs, storage consumers can rest assured that more self storage facilities are in the process of being built to keep up with the high demand.
“New facilities are currently being constructed due to the growth in these market areas,” Horne adds. “Advantage [Storage] is currently working on a new facility in McKinney as we speak.”
Consumers in Frisco looking for self storage will spend approximately $215 to $272 a month for a 10×20 unit. The same space goes for about $215 to $275 in McKinney.