HOUSTON – NewQuest Properties is launching a self-storage development group to tap into the fastest growing storage sector. The inaugural projects will break ground in the fall. The U.S. contains more than 2.3 billion SF of self-storage space.
Houston-based NewQuest is planning simultaneous groundbreakings at Brazos Town Center in southwest Houston and Windcliff Town Center in northwest Houston. Each facility will be 70,000 sf to 80,000 SF with 500 to 800 storage units, gated and set on three to five acres.
“There is strong consumer demand that needs to be met, particularly in areas where we have existing retail centers,” says Ronnie Miranda of NewQuest.
Brazos Town Center is a life essential development with more than two million sf of traditional and service-oriented retail and restaurants at the junction of Southwest Freeway (Interstate 69) and FM 762. Windcliff Town Center is smaller in scope, but located at the crossroads of Jones and Cypress North Houston roads near FM 1960, TX 249 and 290. Both projects are surrounded by single- and multi-family developments, with more rooftops on the way, and close to or en route to major employment centers.
“More and more developers are realizing the value and viability of self-storage investment,” Miranda says. “There’s an unfilled demand that we intend to fill.”
Today’s self-storage tenants are seeking amenity-laden units close to their homes, offices or preferred shopping districts instead of yesteryear’s off-the-beaten-path industrial sites. The U.S. contains more than 2.3 billion sf of self-storage space, of which 32% is located in urban areas, 52% in the suburbs and 16% in rural communities. The industry enjoys historically high occupancy and the lowest default rate of any type of real estate.
“Self-storage facilities and grocery stores share the same target development demographics,” Miranda explains. “We’re putting an innovative, new spin on self storage that will be available at select shopping centers in our portfolio, many of which are located in the strongest and most heavily populated submarkets in the state.”