Finance

With changes in the general economy have come changes in the self-storage finance world. Self-storage lenders, like those for all commercial real estate, apply more stringent underwriting standards when evaluating the potential of a construction, permanent or other self-storage loans. Even the refinancing process has become more challenging for self-storage owners, who must weigh their options and exit strategies. Some negotiate with lenders in an attempt to salvage underperforming self-storage properties. Tax issues are also a significant concern for self-storage owners. Cost segregation and 1031 exchange are possibilities to be explored. Financial and operating performance is reported quarterly by the self-storage real estate investment trusts (REITs): Public Storage Inc., U-Store-It Trust, Sovran Self Storage and Extra Space Storage.


  • The ‘Average Guy’
    Dear ISS, I’m writing to you on behalf of the average guy. I’ve been reading your magazine for about three months now and have enjoyed all of the articles—from how to build a self-storage facility to where to build one, from financing to refinancing. But I was wondering if ...More
    February 1, 2006 Posted in Articles, Finance
  • How to Prevent Electronic-Payment Fraud
    Payment fraud can be one of the most significant problems a self-storage operator faces. The scope of annual merchant-service fraud is approximately $3 billion dollars per year in the United States, or about 10 percent of total electronic transactions. As it relates to ...More
    January 1, 2006 Ross Federgreen Posted in Articles, Finance
  • Electronic Transactions: A Year in Review
    This year will go down as one of major transition for the electronic-payment industry. Several related issues have had an effect on the self-storage business and the way facilities operate: Compliance Cost Alternative payments Compliance In the credit-card arena, compliance ...More
    December 1, 2005 Ross Federgreen Posted in Articles, Finance
  • You Down With OPM?
    Other peoples’ money (OPM) is the key to making commercial real estate yield the greatest return on investment. More important than capitalization rates, revenue management and expense control, cash is king. And never in the modern history of finance has there been a better ...More
    November 1, 2005 RK Kliebenstein Posted in Articles, Development, Finance
  • Evaluating Your Merchant Account
    August, Wells Fargo settled a $34 million lawsuit in which the company was accused of billing service-merchant clients without proper notice. When it comes to your merchant credit-card account, any number of complications can arise. However, you might not know there’s a ...More
    November 1, 2005 Ross Federgreen Posted in Articles, Finance
  • Cutting-Edge Finance Trends
    No matter your vantage point, it’s easy to see that self-storage has become a respected real estate product. According to the Self Storage Association, the industry is a $15 billion business, with more than 38,000 facilities nationwide; and these numbers are likely to ...More
    November 1, 2005 Jim Davies and Eric Snyder Posted in Articles, Finance
  • Startup Essentials: Financing
    Do you really need a bank to start a business? What role does a bank or other financial institution play in your ongoing success? How do you build a solid business and be in position to expand or exit at will—profitably?In this column, I’ll explore these questions and ...More
    November 1, 2005 Fred Grauer Posted in Articles, Finance
  • As Good as Gold
    Most of you are familiar with Aesop’s fable about “The Goose With the Golden Eggs.” Those of you who are not, consider this your lucky day. You’re about to be transported back in time to when moral values were taught using delightful little tales of human foolishness and ...More
    November 1, 2005 Teri L. Lanza Posted in Articles, Finance
  • Wells Fargo Financial Leasing Inc.
    With interest rates still low and property values climbing toward the sky, industry experts agree self-storage is an excellent investment. When people want to enter the business or existing owners wish to expand, one of their first concerns is where to find the money. ...More
    November 1, 2005 Elaine Foxwell Posted in Articles, Finance
  • While the Window Is Open
    From a self-storage owner’s perspective, the legacy of Federal Reserve Chairman Allen Greenspan may well be the window of opportunity he has created for those who can put fixed-rate, permanent financing in place during this period of historically low interest rates. This ...More
    November 1, 2005 Bill Walton Posted in Articles, Finance