Real estate investment brokerage company Marcus & Millichap released the results of its 2006 Self-Storage Research Report, which shows storage continues to be a desired asset class among investors. Following is an executive summary of report findings:
- Strong net-migration, job growth and the housing boom lured investors to the West in 2005. Self-storage sales volume more than doubled to $600 million
- Despite natural disasters, sales in the south-central region increased by 10.5 percent in 2005. The median price rose 10.5 percent to $45.58 per square foot.
- Portfolio sales, which account for 16 percent of national sales volume, doubled in the Southeast in 2005.
- The Northwest continues to command the highest median sales price in the nation. Prices rose 8.6 percent to $82.73 per square foot in 2005.
- In the north-central region, the median sales price for portfolio assets increased 61 percent in 2005, with many transactions in Ohio.
- Cap rates for Class A facilities are in the 6.5-7.5 percent range. Class B properties are trading in the 7.5-8.5 percent range. Class C assets typically sell with an 8-9 percent cap rate.
Marcus & Millichap is one of the largest commercial brokerage firms in the nation. For property market research on cities nationwide, visit www.marcusmillichap.com/Research/Reports.asp.