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 Southeast, Round Two
    Our roundtable of experts gathered this month to discuss the Southeastern United States. The Southeast has lots of buyers and some folks thinking about selling. Let's hear what our local experts have to say about their respective cities and regions. The brokers surveyed ...More
    September 1, 2002 Michael L. McCune Posted in Articles, Finance
  • Automatic Rent Collection
    Modern management software can collect your rental revenue automatically, without any action by your employees. The benefits are profound: reduced overhead, accurate auditing, reduced customer costs, increased occupancies and increased rental rates. Once you learn a few ...More
    May 1, 2002 Douglas Carner Posted in Articles, Finance, Technology
  • Financial Feasibility of Records Storage
    Until now, the underlying profitability of records storage has little surfaced or been presented in a comprehensive cash-flow model. Moreover, the financial advantage of codeveloping records storage with self-storage needs to be made clear. The purpose of this article is to ...More
    April 1, 2002 Jim Oakley Posted in Articles, Development, Finance
  • Cost Segregation
    In the case of Hospital Corp. of America and Subsidiaries v. Commissioner , 109 TC (1997), the tax court concluded property qualifying as tangible personal property under former investment tax credit (ITC) rules would also qualify in the same manner for the purposes of tax ...More
    April 1, 2002 Mark de Stefanis Posted in Articles, Finance
  • 1031 Exchange
    When you decide it is time to sell your self-storage facility and move on to other ventures, can you have your cake and eat it too? That is, can you take your profit, avoid income taxes and move to Hawaii? Surprisingly, it has become easier and easier to shift real estate ...More
    March 1, 2002 David A. Weissmann Posted in Articles, Finance
  • How About Those Cap Rates?
    When determining the value of real estate, including self-storage, there are three commonly accepted methods: the cost approach, sales-comparison approach and income approach. The income approach involves the capitalization of income and, hence, the often-heard reference to ...More
    February 1, 2002 Charles Ray Wilson, MAI, CRE Posted in Articles, Finance
  • State Of The Industry Report 2002
    Jim Chiswell was with a client during the early morning hours of Sept. 11 when he heard about a plane crashing into the World Trade Center. "From the second floor of this building in New Jersey, we watched the second plane hit, not knowing what it was," says Chiswell, of ...More
    January 1, 2002 Amy Campbell Posted in Articles, Development, Finance
  • Tea Leaves and Tarot
    Throughout the centuries, those who would believe--whether out of simple curiosity or basic desperation--have sought forbidden glimpses of the future. They would hold out telling palms to those who could read them or weave stories in tea leaves and porcelain cups. They ...More
    January 1, 2002 Teri L. Lanza Posted in Articles, Development, Finance
  • Conduit Lending
    In today's self-storage financing market, most of the long-term, fixed-rate financing (10 years or longer) is provided by the Wall Street "conduit" market. These loans are pooled together, packaged and sold to investors by Wall Street firms as commercial mortgage-backed ...More
    January 1, 2002 David Smyle Posted in Articles, Finance
  • Self-Storage Finance
    With interest rates at record-low levels and a sagging economy, would this not be a great time for self-storage finance? One would certainly think the banks would jump at the chance to finance self-storage properties, given the low interest rates. Lower rates make it easier ...More
    November 1, 2001 RK Kliebenstein Posted in Articles, Finance