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Cautious Optimism Reigns in the Self-Storage Real Estate Market

By Ben Vestal Comments
Continued from page 1

A Reason for Optimism

With the looming presidential election this year, we will soon learn how the candidates are proposing to keep our economy on track. The power struggle and lack of decision-making by our government will lead to a temporarily prosperous time for buyers and sellers alike. It will allow buyers to continue to capitalize on low interest rates, while sellers will be able to capitalize on the current capital-gains tax structure along with a variety of other opportunistic political policies.

We must all remember, though, that one stroke of the pen can change everything. This, along with the unsettling vibes we’re getting from several industrialized countries in Europe and Asia, should concern us all, as the potential effects on the U.S. investment climate are severe.

Self-storage has outperformed almost all other real estate asset classes over the last three years, and when there are high returns, there are always new investors looking for yield. With real estate investor sentiment remaining strong, we’ve found, ironically, that the uncertainty in the market may actually be increasing the demand for real estate investments.

Wall Street gave investors a wild ride in the second half of 2011, and most investors are finding real estate provides favorable returns relative to other investment classes. When you have a business (self-storage) that performs this well in a very difficult economic market, there’s good reason for some optimism in spite of the turbulent market. However, keep up the hard work as the ability to keep your current tenants and attract new ones is what has made the self-storage industry the shining star in the real estate business.

Ben Vestal is president of the Argus Self Storage Sales Network, a national network of real estate brokers who specialize in self-storage. Argus provides brokerage, consulting and marketing services to self storage buyers and sellers and operates, a marketing medium and information resource for facility owners. For more information, call 800.55.STORE; e-mail

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