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.


  • Refinancing Opportunities
    It’s nearly the end of 2005, and who would have thought we would continue to see such a low interest-rate environment? The opportunity to refinance and get out of a rising adjustable rate, pull out cash or lower your monthly payment is still available. In this article, I’ll ...More
    November 1, 2005 David Smyle Posted in Articles, Finance
  • What Makes a Good Deal?
    In any business transaction, investors look for the right mix of critical elements. In self-storage, that mix includes an experienced management team, a good marketing plan, strong cash flow and an ability to adapt in a changing marketplace. At the heart of every deal is a ...More
    November 1, 2005 Benjamin Burkhart Posted in Articles, Development, Finance
  • Electronic Revenue Options
    The traditional payment methods accepted by self-storage businesses—cash, check and credit card—are now available in the form of electronic funds transfer. Electronic banking provides merchants with ever-increasing opportunities to streamline payment processing while ...More
    November 1, 2005 Alison Kiesa Posted in Articles, Finance, Technology
  • Making the Most of Tax Benefits
    Following 9/11, significant but temporary tax changes were enacted to entice real estate owners to invest in their properties. These benefits are running out at the end of the year, so self-storage owners would do well to cash in while they can. For starters, 2005 is the ...More
    November 1, 2005 Mark de Stefanis Posted in Articles, Finance
  • Buchanan Storage Capital
    Today’s self-storage environment is a lot like chess. Owners and investors move along a constantly changing battlefield checkered with opportunity and potential danger. They have to be nimble and patient in their movements, balancing agility with long-term strategy. ...More
    November 1, 2005 Posted in Articles, Finance
  • The Finance of Storage Marketing
    Let’s talk about financeas it relates to the marketing of your self-storage business. First, you need to understand the concept of “return on marketing dollars” (ROMD). You want to spend the least amount possible on marketing while maximizing your return. Most owners go for ...More
    November 1, 2005 Fred Gleeck Posted in Articles, Finance
  • Loan Types and Lending Options
    Making the choice of which type of financing to secure for your self-storage property is sometimes straightforward. Other times, it’s complicated and confusing. In either case, it’s an important decision, one that can have a significant impact on your business, ...More
    November 1, 2005 Tom Walsh Posted in Articles, Finance
  • Mapping Out a Loan Request
    Finding your way around is easy these days. Forget unfolding a printed map and searching for the most convenient route (and later trying to refold it to original form). That’s old school. Today, you simply go online to a mapping website, type in your starting location and ...More
    November 1, 2005 Neal Gussis Posted in Articles, Finance
  • The Payment Advisor
    “The Payment Advisor” is a monthly Q&A column to which readers can submit questions about card transaction systems, electronic funds transfer, check acceptance and processing, wireless transactions, international funds transfer, and other payment issues. To participate, ...More
    October 1, 2005 Ross Federgreen Posted in Articles, Finance
  • Interest Rates
    What do we know about interest rates today? We know they’re very hard to predict in the short run. We know they’re currently at 42-year lows and have remained there longer than at any other time in the last century. We know low interest rates have a very positive (if not ...More
    October 1, 2005 Michael L. McCune Posted in Articles, Finance