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.


  • Loan Types And Lending Options
    Just as there are many types of self-storage facilities, there is a diversity of financing options available in the capital markets. Some self-storage owners seek floating rate financing, while others prefer fixed-rate loans. Some ownerdevelopers want construction financing ...More
    November 1, 2003 Eric Snyder and Jim Davies Posted in Articles, Finance
  • The Self-Storage Joint Venture
    Recent stock market meltdowns have caused investors many sleepless nights. Overnight, they find an earthquake in their IRA account. Years of saving for retirement are wiped out without warning. Yet the self-storage investment remains virtually undisturbed by perturbations ...More
    November 1, 2003 Jim Oakley Posted in Articles, Development, Finance
  • Refinancing $elf-$torage
    The adage goes, “Take Advantage When Opportunity Knocks.” I can easily say opportunity has been knocking. This summer, the interest rates reached the lowest levels in the last 45 Years (Before Self-Storage became a recognized industry). Fixed-rate mortgages, which are based ...More
    November 1, 2003 Neal Gussis Posted in Articles, Finance
  • Interest-Rate Trends
    If you’re a self-storage owner, here’s a question you may not be answering correctly: What is my largest expense item? The answer is typically either payroll or property taxes. In actuality, for many owners, it is interest expense. Here’s the point: Interest expense and ...More
    November 1, 2003 Bill Walton Posted in Articles, Finance
  • Compiling Your Loan Package
    The loan-approval process can differ from lender to lender, but one thing is consistent: First impressions are lasting. The key to any business meeting is the initial presentation, whether it be physical appearance or quality of information or both. The following is an ...More
    November 1, 2003 David Smyle Posted in Articles, Finance
  • Working With The Appraiser
    The intent of this article is to offer some suggestions to the owner who is preparing to have his facility appraised to ensure a proper valuation. The appraisal process is relatively simple. Many years ago, an appraiser could simply state the value conclusion, and it wasn’t ...More
    November 1, 2003 Ray Wilson Posted in Articles, Finance
  • The Deep South
    This month, I gathered a roundtable of experts to discuss the state of self-storage in the southern United States. Let's hear what local experts have to say about their respective cities and regions. Our panel of brokers includes: C. William Barnhill, Omega Properties, ...More
    June 1, 2003 Michael L. McCune Posted in Articles, Finance
  • Online Payment and Reservation Technology
    There is no question the Internet is becoming a standard medium for Americans to research companies and products, learn about services and conduct business. By the end of 2002, more than 136 million had access to the Internet. It is predicted that by the year 2004, the ...More
    May 1, 2003 Rick McGee and Karen Genualdi Posted in Articles, Finance, Technology
  • European Self-Storage Faces Financing Challenges
    One of us was recently invited by a top firm of London property advisers to spend a day sailing in the Southampton waters. Fellow guests included representatives of some of the leading U.K. property institutions as well as some distinguished commercial surveyors. During the ...More
    March 1, 2003 Richard Fox and Bill Lax Posted in Articles, Finance
  • A Discussion of Cap Rates
    During my early career in real estate, I served as a real estate analyst for a major Wall Street institutional investor that was very focused on capitalization (cap) rates and 10-year internal rates of return (which, quite frankly, are only as good as the information and ...More
    February 1, 2003 Matthew T. Pipkin Posted in Articles, Finance