Cap Rates & Property Valuations
What’s a self-storage facility worth? In terms of establishing a quick, initial value, most buyers and sellers agree the use of a direct capitalization method, or cap rate, is effective when used to compare similar properties in comparable markets. A cap rate is a basic ...More
February 1, 2005 Rob Schick
Posted in Articles,
Finance
Overcoming Objections From Small Business
Selling records storage is easy once you understand the two prime objections you’ll get from customers and how to overcome them. This is an important ingredient in the records storage “lite” model designed for self-storage implementation. My last three columns have focused ...More
December 1, 2004 Cary F. McGovern
Posted in Articles,
Finance
What's Up With Permanent Financing?
“Unbelievable” is the only word to describe continued financing opportunities for self-storage and most other commercial-property types. To illustrate, the following chart shows a sample of long- and short-term index rates over the last 10 years. Today’s rates are still ...More
November 1, 2004 David Smyle
Posted in Articles,
Finance
Capital Types and Trends
What are two financing facts many storage owners are surprised to learn? One, there are more types of permanent, bridge and construction loans available today than at any time in the history of the industry; and two, lenders are more likely to add “custom” loan terms and ...More
November 1, 2004 Jim Davies and Eric Snyder
Posted in Articles,
Finance
Cap Rates—A Mystery Unveiled
If you are buying, selling or refinancing a self-storage property, you can’t have a three-minute conversation without the term “cap rate” coming up. Everyone acts as if they know what this is—a few really do know, many more think they know, and some refuse to admit they ...More
November 1, 2004 Michael L. McCune
Posted in Articles,
Finance
The Time of the True-Tax Lease
In today’s self-storage market, with spiking steel prices and an upward trend in interest rates, facility owners need to consider every money-saving technique available. Of course, the best method is the one that does not require you to spend money to save money. Over the ...More
November 1, 2004 Ronald J. Pope
Posted in Articles,
Finance
Self-Storage Construction Loans
Many first-time self-storage developers assume a construction loan is similar to permanent financing. But approaching financing from this perspective may create long-term negative consequences. Construction and development financing is radically different from other credit ...More
November 1, 2004 RK Kliebenstein
Posted in Articles,
Finance
Employee Credit-Card Fraud
Incidents of credit-card fraud and identity theft have risen dramatically in recent years. With increased use of e-commerce and technology in business, it has become easy for thieves to steal and misuse credit-card numbers. The dangers do not always come from outside a ...More
November 1, 2004 Amy Brown
Posted in Articles,
Finance
The Art of the Cap Rate
Economics is sometimes called the “dismal science” because it can present bad news about money and the economy. In the economics of self-storage, the calculation of an overall capitalization rate, or “cap rate,” might be called an abysmal science because there is much ...More
November 1, 2004 R. Christian Sonne
Posted in Articles,
Finance
Compiling Your Loan Package
There is a direct correlation between the reliability of the loan quote from your lender and the quality of the information you provided in your loan package. If you want a quote you can “take to the bank,” take the time and effort to give your source sufficient, accurate ...More
November 1, 2004 Tom Walsh
Posted in Articles,
Finance
