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.


  • 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
  • State of the Industry Report
    A slow economy and declining demand put domestic self-storage to the test. What role will overseas expansion play? Crowded markets and a lagging economy over the past year tested the myth that self-storage is recession-proof. Some stores faired well. Others saw occupancy ...More
    January 1, 2003 Amy Campbell Posted in Articles, Development, Finance
  • Forecast '03
    While they may not have an all-seeing crystal ball, the industry experts who shared their predictions for the upcoming year with Inside Self-Storage do know a thing or two about the business. They are self-storage consultants, presidents, CEOs and all-around gurus. Here's ...More
    January 1, 2003 Posted in Articles, Development, Finance
  • ITLA Capital Corp. and Imperial Capital Bank
    HEADQUARTERED IN LA JOLLA, CALIF., ITLA CAPITAL CORP. is a publicly traded financial-services company. It operates primarily through its banking subsidiary, Imperial Capital Bank (ICB), an FDIC-insured financial institution with approximately $1.5 billion in assets. Since ...More
    November 1, 2002 Posted in Articles, Finance
  • Money Matters Made Easy
    From construction loans to refinance, this easy-reference guide will lead you through the process and help you negotiate the twists and turns of banking. Structure Your Deal Understand the type of loan you are seeking. Different kinds of loans mandate unique requirements of ...More
    November 1, 2002 Posted in Articles, Finance
  • Financing for the Long Term
    If you have been thinking about buying or refinancing a self-storage facility, there has never been a better time to place long-term financing on your property. "Long Term" in the financing world is generally considered to be 10 years or longer, and long-term financing ...More
    November 1, 2002 David Smyle Posted in Articles, Finance
  • Preparing a Loan Package
    If you are looking for self-storage financing, the timing could not be better; but do not make the mistake of creating a poor loan package. The time and effort put into preparing a quality package will pay off substantially, whether you are looking for the highest loan ...More
    November 1, 2002 Eric Snyder Posted in Articles, Finance
  • Falling Dow(n)
    AS I WRITE THIS, STOCKS ARE SINKING. THE DOW HAS JUST PLUNGED 230 POINTS TO ITS FIRST CLOSE BELOW 8000 IN TWO MONTHS, and the NASDAQ is down 36. Investors are being pelted with sour economic news. And yet, on the positive side of things, mortgage rates are at record lows. ...More
    November 1, 2002 Teri L. Lanza Posted in Articles, Finance
  • The Sophistication of Self-Storage
    SELF-STORAGE PROPERTY, AS A SPECIALTY SECTOR IN THE REAL ESTATE INDUSTRY, remains an attractive asset class to those lenders and investors who understand the cash flow and counter-cyclical "safe haven" characteristics of the product. On a national basis, the industry ...More
    November 1, 2002 Thomas Lorenzini and Michael Buckley Posted in Articles, Finance