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 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
  • Storage USA Franchise Program
    Inside Self-Storage recently had the opportunity to interview Ed Ansbro, vice president of Franchising For StorageUSA (SUSA). Following are his comments on the company's program, how it is growing, and what it can do for self-storage developers in all parts of the country. ...More
    November 1, 2002 Posted in Articles, Development, Finance
  • Anticipating the Refinance
    The fall marks the season when many people focus on time ahead. The kids are back in school, summer vacations are over, and the days are getting shorter. This is the time when I start the house projects I put off over the summer. Have you ever noticed the first 80 percent ...More
    November 1, 2002 Neal Gussis Posted in Articles, Finance
  • Finance Techniques and Alternatives
    Facility owner and real estate broker C. William Barnhill did some interesting research on loans he was refinancing for his own account. I asked him to share his findings with our readers. TRADITIONAL, FIXED-RATE, COMMERCIAL BANK LOANS HAVE BEEN the mainstay for ...More
    November 1, 2002 Michael L. McCune Posted in Articles, Finance
  • 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