It’s a cellar’s market.
New Yorkers are spending more than the price of the average American home — on storage units.
Tribeca’s 56 Leonard just sold a 200-square-foot unit for $300,000. That’s $1,500 a square foot for a metal cage in the basement of the future luxury skyscraper.

“It’s unbelievable,” said Elizabeth Unger of Corcoran Sunshine, which is marketing the 60-story building.
“But when you compare New York to the rest of the country, we’re limited with space. We don’t have the garage or basement, and closet space is at a premium.”
The 145-unit, modernist glass tower resembling a stack of Jenga blocks is slated to open in the summer of 2015.
Buyers are paying $2,000 to $6,000 a square foot for homes in the high-rise, where a four-bedroom penthouse is in contract for $47 million.

It couldn’t be any worse than Kowloon, which had more than 600 people sharing 5,000 square feet of space. In fact, New York today is less dense compared to the New York more than a century ago. Still, boroughs like Manhattan hardly have the luxury of space, which is why it’s not uncommon to see storage spaces go for as much as $1,800 per square foot. As if the cost of housing isn’t high enough, storage in the Big Apple, something residents really need, also comes at a premium.

Of course, that’s not a choice for residents looking to save money on storage. Instead, they look to Manhattan storage services like Gibraltar Self Storage, where the rate runs for as low as a dollar per square foot for lockers. You can get a 15-square-foot locker for less than $17, a far cry from the $1,800-per-square-foot mentioned earlier. If you’re looking to reduce or avoid storage expenses, however, just keep what you really have to keep.

Sell the things you don’t use or need; not only will you free up valuable space in the house but also earn fast cash out of them. Learn to make the most out of your closets, drawers, organizers, and storage rooms in the house. Settle for small, compact furniture, especially if you’re living in one of New York’s poshest condo units. There are many ways to manage your storage space effectively if you only care to look around.

If self storage services can’t be avoided, look for a competitive rate and the right room. Will you have any use for a 200-square-foot storage space? Take this into account when you choose.

[From: New Yorkers spending $300G on STORAGE in the basement of luxury skyscraper, New York Post, August 25, 2013]