Public Storage Expands In Richmond, Unveils Another Facility
Zacks Investment Research | Dec 17, 2017 08:44PM ET
Public Storage (NYSE:PSA) recently unveiled a new facility in Richmond, TX, that will offer more than 1,200 climate-controlled storage units and serve the growing Houston suburb. These units, with a range of prices, will satisfy personal and business requirements.
The facility marks the company’s seventh in the Houston area this year and is expected to serve the fast growing community, along with those in Sugar Land and neighboring master communities like Aliana Houston, Harvest Green and Long Meadow Farms, the company said.
Notably, expansion in Richmond is a strategic fit for Public Storage. This is because the population of Richmond has recorded 4% growth over the last five years, per the U.S. Census. The community is growing and there is an added demand for self-storage facilities from this expanding population.
Further, expansion efforts are being carried out on Grand Parkway, also known as Highway 99, to have capacity for additional commuters in the greater Houston area. As such, this facility being suitably located on the State Highway 99, can serve both Houston commuters and Richmond residents alike.
Moreover, the company has been making concerted efforts to enhance its presence in the growing Houston region and has added more than a million square feet of storage space in less than a year.
Public Storage is one of the largest owners and operators of storage facilities in the United States. The ‘Public Storage’ brand is the most recognized and established name in the self-storage industry, with presence in all major metropolitan markets of the nation.
The company is also capitalizing on growth opportunities. In fact, since the beginning of 2015 through Sep 30, 2017, it has acquired a total of 86 facilities with 6.2 million net rentable square feet from third parties for around $679.6 million.
In addition, since Jan 1, 2013, Public Storage has opened newly developed and redeveloped self-storage space for a total cost of $831.2 million, which added around 7.5 million net rentable square feet. Such acquisitions and expansions bode well for its long-term growth.
However, supply has been rising in a number of markets. This is a concern as it limits the company’s power to raise rents and turn on more discounting. Also, rate hike adds to its woes.
Shares of Public Storage have outperformed the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.