Marcus & Millichap Real Estate Investment Services has released its Self-Storage Research report covering the first half of 2011, the overall message of which is that banks are beginning to loosen their lending restrictions and self-storage investment activity should increase this year. The report includes an industry outlook by region addressing facility occupancy, rents, cap rates and prices. Highlights from the report include:
- Investment activity will increase as banks sell off real estate-owned properties, drawing regional syndicates from the sidelines to target class-B and -C assets throughout the Sun Belt.
- California and Florida will register a sizable share of closings as maturing loans and soft operations push properties into foreclosure.
- Financing for new buyers seeking properties below $5 million and with a stable operating history will emerge in the form of SBA (Small Business Administration) loans.
- At the top of the market, cash-heavy real estate investment trusts and institutions are moving back into the self-storage arena, leveraging operating efficiencies to add value to recently purchased properties.
- Class-A assets in primary markets, including those in the Northeast, will garner the most attention.
Marcus & Millichap Research Services is a division of Marcus & Millichap Real Estate Investment Services, a commercial real estate investment services firm. As a service to its clients, Marcus & Millichap provides research reports through the Research Services page of MarcusMillichap.com. Additional information on a particular self-storage market can be had by contacting a local office and speaking with one of the company’s investment specialists.