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A $10.5 billion deal would create a
self-storage giant in the U.S.
[March 17, 2026]
By MICHELLE CHAPMAN
A proposed
megadeal in the self-storage business would create a $57 billion company
overseeing square footage, if it were combined in a single location, of
a small city such as Cupertino, California, or Chapel Hill, North
Carolina.
Public
Storage said Monday that it will buy National Storage Affiliates in an
all-stock deal worth about $10.5 billion, creating a company with 327
million square feet of storage at nearly 4,600 locations in the U.S. |
Carol Avalos, far left, Wes Demory, center, and Desiree Mora working at
the customer service desk for Public Storage, Inc. on March 7, 2006, in
the Eagle Rock section of Los Angeles. (AP Photo/Ric Francis, File) |
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Public Storage said it wants to expand its presence in areas
like the Sun Belt and other regions that are likely to grow in
population.
The deal, if approved, would combine the largest and the
fourth-largest U.S. self-storage companies by market
capitalization. Extra Space Storage and CubeSmart are the next
two largest companies.
Public Storage, which has been based in Glendale, California,
said this year that it is relocating to Frisco, Texas, near
Dallas. National Storage is based in Greenwood Village,
Colorado, a suburb of Denver.
Investors that hold National Storage common stock and operating
partnership units will receive 0.14 of a share of Public Storage
common stock or partnership units for each National Storage
share or unit that they own. This represents $41.68 per share.
Shares of National Storage jumped nearly 30% at the opening
bell, while Public Storage's stock fell less than a percent.
Before the transaction closes, Public Storage and limited
partners in National Storage's operating partnership will form a
joint venture that includes 313 properties on National Storage’s
operating platform comprising 19.6 million rentable square feet
across 28 states and Puerto Rico with an estimated value of
approximately $3.3 billion.
Operating partnership unitholders are expected to own about 80%
of the joint venture at its start, with Public Storage holding
the remaining stake. Public Storage will exclusively manage the
joint venture portfolio and will earn customary property
management, asset management and tenant reinsurance income.
The deal, which was approved by the boards of both companies, is
expected to close in the third quarter. It still needs approval
from National Storage equity holders as well as regulators.
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