Once again, the right answer is yes! In summary, the serious buyers are scarce, almost always knowledgeable about self-storage and, for the foreseeable future, are looking only for projects that are attractively priced. Further reducing the number of buyers is the availability of financing in a diminishing loan market.
Additionally, there soon will be foreclosed properties on the market that will add a new and detrimental dimension to the market competition. The net result is if you expect to sell in today’s market place, you must be aggressive in pricing, patient and emotionally ready to recognize the market as it is. If any of your answers are “no,” you may want to think about Option 3 or return to Option 1.
Option 3: Remain in denial. Denial, by simple default or negligence, is often a popular choice when presented with rather stark and limited options. By any standards, the first two options are more difficult and denial is easier—for now. However, the other two options give you some ability to protect the fruits of your investment and labor and will likely improve your future options.
Experience speaks to me on denial; the words that come to mind are worry, more worry, recrimination, angst, helplessness and guilt, to name a few. Thoughtful action is always more productive than worrying about doing nothing!
Good self-storage brokers can help you understand the market and assist you in buying or selling properties. Although they can't change the market, a good broker will work with self-storage owners to find the best solutions in today’s challenging environment.
Michael L. McCune is president of the Argus Self Storage Sales Network, a self storage real estate brokerage and development company based in Denver. Argus also operates www.selfstorage.com, a marketing medium for owners in the self-storage industry. For more information call 800.55.STORE.