It is the rare self-storage owner, operator, manager, or industry professional who doesn’t attempt to keep the operation’s annual income tax bill to a minimum with tax planning, either year-round or end of the year. Why then is a bill for a tax that is...

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...

Studies have shown that property taxes are the most hated taxes in America. Why? There might be several reasons, including the question of why we should continually pay taxes on property that we own, how the taxes are assessed, and the fact that...

SBA 7(a) Loan Offers Ideal Option For First-Time Self-Storage Owners

When Jennifer Perkins decided to open a storage facility just west of Nashville, Tenn., she spoke with many banks in her quest for financing. Ultimately, everything pointed her to the...

The Next Competitive Battlefield

The self-storage customer experience is changing. You may even be wondering why it’s called customer experience and what all the hullabaloo is about. The term customer service is different from the experience the...

Undercurrents That Facilitate Optimum Asset Values

A series of undercurrents influence executive decisions in the board room, especially with the myriad of asset classes and wide array of business models that permeate the self-storage industry. Some...

The Cost Of Concessions

The Christmas season is behind us, but some retail establishments may still be adjusting from the hustle and bustle of the most profitable time of the year. Shelves once overflowing with holiday merchandise now don discount signs...

Is Plunging Performance Problematic?

At the moment, descent is not a problem. However, it is a situation most segments of the economy are beginning to confront—that we are over the peak and heading down the other side of the curve.

Self-storage is...

Rising Interest Rates And Rougher Financing Tides

Another year, another year for which to be thankful.

As 2018 ends, we can be thankful the self-storage industry enjoyed yet another year of growth, increasing income, and higher property valuations that...

Determining The Real Value Of A Property

Operating a self-storage business also means owning a property—a physical building where tenants rent space. After becoming established, the owner/operator typically becomes mostly concerned with the day-to-day...

Has The Industry’s Development Cycle Passed Its Peak?

The self-storage industry has been living in a fantasy world for the past few years, a kind of mercantile paradise where net income always climbed, buildings were fully occupied, the cost of capital...

Does It Work?

By Marc Goodin

We know franchising works for many businesses like hotels, restaurants, coffee shops, and others, because we spend our money with them on a regular basis. A new franchise opens every eight minutes of every business day....

Stalemates In The Sales Process

According to one source, there may be $400 million in self-storage properties that have sat on the sales market for more than two years. By all accounts, storage facilities have never been worth more and experts...

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...

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...

Could Steep Property Tax Increases Be 2018’s Most Taxing Issue?

In 2018, self-storage owners and operators should be thinking about their taxes–property taxes to be specific. If the governmental levy hasn’t increased, it will soon enough, and the new...

Dealing With Annoying Business-Saving Records

The IRS recently reminded every self-storage facility and business about the importance of records, especially the importance of safeguarding tax records against natural disasters. Good records can also...

The Ins And Outs Of Joint Ventures

Our technology-driven world has had far-reaching implications on real estate investments. Amazon and other online merchants have changed the landscape for retailers, and office space is facing challenges due to an...

Cash Is Flowing!

The self-storage industry presented two faces throughout 2017. On one side, there were widespread reports during the first half of the year of decelerating rental growth, revenue, and occupancy, and hints of discounting. In the second...

Reconciling To Tax Reform 2017 Style

Are you ready for tax reform? Well on its way to becoming a reality, the Tax Cuts and Jobs Act has passed both the House and the Senate. The only thing standing between the president’s promised signature and this...

A New Class Of Investors

Since the Great Recession, the self-storage sector has grown by leaps and bounds. With a shortage of supply, growing populations, and increased demand in many MSAs across the country, operators of stabilized facilities managed...

2018 To Bring Sustainable Growth Rates And Realistic Expectations

The perception of the self-storage industry by outside investors is vastly different than that of people in the industry. While outsiders are pessimistic, insiders are optimistic.

The...

Solid Construction Financing Exists For Your Self-Storage Project

Today’s self-storage facilities are more than concrete walls and steel doors; they have architectural elements and amenities that attract thousands of customers each year. These new and...

The Precursor To Any New Self-Storage Build

On the popular Showtime series, “Ray Donovan,” Bunchy Donovan was presented with the “perfect, no lose” business deal when a businesswoman who looks for opportunities for the family told him about a...

Determining Unit Pricing On A New Facility

By Kerri Fivecoat-Campbell

A lot of research and calculations must go into developing and opening a successful new self-storage facility. Selecting and purchasing a piece of property for a price that will...

How To Use Occupancy And Vacancy Rates As Gauges 

Most self-storage operators understand the three principal metrics used to determine how well a facility is performing: physical vacancy by units, physical vacancy by square footage (sometimes called...

Determining Unit Pricing On A New Facility

A lot of research and calculations must go into developing and opening a successful new self-storage facility. Selecting and purchasing a piece of property for a price that will bring a good return, determining...

It is important for storage owners and supervisors to understand not only what is being stolen, but what motivates people to embezzle. This will allow the owner to implement appropriate preventive and detective measures. Keep in mind that many employees...

Lenders Cautious On Financing New Storage Development

During the past two years, self-storage has enjoyed the attention of investors and developers as the industry has experienced rising occupancies and property valuations. New money has entered the...

Objective Value Is A Matter Of PerspectiveBy Adam Karnes

A capitalization rate, or cap rate, is a useful tool in a real estate investor’s valuation arsenal. Everyone seems to use them, but how do we define them? While researching for this article, I...