In 2021, self storage was the darling of the Wall Street Journal, with the paper declaring the industry “The Pandemic’s Hot Property.” Last week, the same outlet reported that self storage rents and occupancy had fallen to record lows as the “Pandemic Boom Cools.” But is this really accurate? The reasons...
What’s it worth? That’s the ultimate question when it comes to determining valuation for developments and for sales and acquisitions in self-storage and all other classes of real estate. Getting the right answer involves answering a complex series of other questions. Market Effects Chris Sonne, executive vice president and specialty...
Prime Group Holdings, LLC, a private equity real estate firm based in Saratoga Springs, NY, has closed its third flagship self-storage fund, Prime Storage Fund III, LP at the hard cap of $2.5 billion, exceeding its $1.5-billion target. Fund III is the company’s largest fund to date and reportedly the largest...
Predicting the movement of interest rates is like blowing on the dice before you toss them to the green felt. You can read the signs to help hedge your bets, though. In early November, the Federal Reserve System’s Federal Open Market Committee raised the federal funds interest rate by 75...
Admin fees, insurance, merchandise, late fees, other fees, charges, and add-on services—all of these can add up to quite a lot of income and improve your property’s overall valuation. Let’s assume your property income for the year is $1 million, and that you average the same amounts for each of...
The way we live is continuously evolving. From the once sought out luxury mansions to the ongoing rise of small housing unit developments and van-dwelling, we are living in an era where the drive to downsize our living spaces is increasing without wanting to discard our belongings. To adapt to...
The self-storage asset class is now generally considered CORE or CORE+ commercial real estate, comparable to office, industrial, retail, and apartments based on robust underwriting criteria in our latest Investor Survey for the sector. Since our last survey six months ago, cap rates have compressed an astonishing 44 basis points,...
2020 has ushered in a dramatically different landscape for not only the self-storage industry but the entire economy as well. As brokers, we may sometimes forget that our world of real estate transactions is quite unfamiliar to our clients when they decide to sell their properties. As self-storage owners and...
In the game of Monopoly, players move their piece around the board in an attempt to purchase as many properties as possible. When a player has procured all the properties within the same color group, he/she can begin building houses, and eventually hotels, to increase those properties’ rental rates. Anyone...
Cash Flow Or Cap Rates In the commercial real estate world, most investors apply value to a property through something called the capitalization rate or, quite simply, the cap rate. The term is universal and means the investment return based on the income that property is expected to generate. Getting...
Where Are Values Headed? By Dale C. Eisenman, CCIM, and Michael Morrison After a period of high transaction activity for the past few years, the market has continued to be strong into 2018. Many of our clients and potential clients are faced with attempting to decide if they should hold...