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 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
    June 1, 2005 Ross Federgreen Posted in Articles, Finance
  • Online Payment Processing
    Online payment processing is supposed to be easy, right? But recent modifications to rules and regulations by credit-card companies have caused confusion about what merchants can and can’t do. Navigating the dos and don’ts may not be easy, but being able to accept ...More
    May 1, 2005 Brent S. Hoffmann Posted in Articles, Finance, Technology
  • Storage Facilities and EFT
    In the past, self-storage businesses received the lion’s share of rental payments in the form of paper checks, but these are quickly becoming a thing of the past. Electronic-check payments, known as electronic funds transfer (EFT), are fast becoming an efficient, economical ...More
    May 1, 2005 Alison Kiesa Posted in Articles, Finance, Technology
  • 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
    May 1, 2005 Ross Federgreen Posted in Articles, Finance
  • Alternative Payment Methods
    Beginning in the May issue of Inside Self-Storage, Mr. Federgreen will host a monthly Q&A column titled “The Payment Advisor,” to which readers can submit questions about card transaction systems, electronic funds transfer, check acceptance and processing, wireless ...More
    April 1, 2005 Ross Federgreen Posted in Articles, Finance
  • Financing in the U.K. Self-Storage Market
    The U.S. self-storage market is more than 30 years old and comprises more than 37,000 properties, with an average occupancy of 84.6 percent. It has grown rapidly from 1992, when 19,500 properties experienced an average occupancy rate of 84.8 percent. The U.K. market, on the ...More
    April 1, 2005 Andrew Jacobs Posted in Articles, Finance
  • 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
  • Selling Portfolios & Single Assets
    We remain in a seller’s market for self-storage properties, with capitalization rates ranging from the high sixes to the low sevens for high-quality portfolios and single assets. With pricing this aggressive, why are so many new players entering the industry? Capital flow ...More
    February 1, 2005 Marc A. Boorstein Posted in Articles, Finance
  • Section-1031 Exchange
    Since the 1920s, savvy taxpayers have been growing their wealth on a tax-deferred basis by using Section 1031 like-kind exchanges. Originally used by cattle farmers to defer payment of capital-gains tax on the exchange of cattle, 1031 is currently used to defer ...More
    February 1, 2005 Thomas E. St. Jean and Nicholas Malagisi 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