Extra Space Agrees to Buy Life Storage. There’s a New Industry Leader.

Extra Space Storage has agreed to buy its smaller rival Life Storage for $12.7 billion. It’s a deal which will form the largest operator renting out storage space in the U.S. by number of locations and challenges industry leader Public Storage. 

The combined company, a real estate investment trust, will have more than 3,500 locations and two million customers, the companies said in a joint statement on Monday.  The transaction is expected to generate at least $100 million annually in savings and improved property revenue. The companies rent out storage space to individuals and businesses, usually on a short-term basis.