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.


  • 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
  • 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
  • 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
  • Financing and Loan Types
    Watching the economy during the past year has been like riding a roller coaster. The unemployment rate is up, corporate earnings are down, inventories are up and interest rates are down. So with all the talk from recession to recovery and hard landing to soft landing, how ...More
    November 1, 2001 Eric Snyder Posted in Articles, Finance
  • Who Wants to Be a Self--Storage Millionaire?
    This was the most difficult article to write. I was presented with the task of writing it just before one of our country's most trying times: the terrorist attacks on the World Trade Center and the Pentagon. Like many other people, I now have a new understanding of how ...More
    November 1, 2001 Neal Gussis Posted in Articles, Finance
  • Financial Feasibility
    Financial FeasibilityProving it to your lender By Jim Oakley The good old days of scratching feasibility on the back of an envelope are gone. Yesterday's answers are not good enough for today's lenders. If you don't show profitability simply and clearly at the outset of ...More
    May 1, 2001 Jim Oakley Posted in Articles, Development, Finance
  • The State of Industry Financing
    The State of Industry FinancingThough lenders may run scarce, the 'paper' is still out there By R.K. Kliebenstein The last few years have witnessed many changes in the arena of finance, and self-storage financing has been no exception. In September 1998, the finance world ...More
    March 1, 2001 R.K. Kliebenstein Posted in Articles, Finance
  • 2001 RealEstate Review
    2001 RealEstate ReviewWill there be an economic slowdown, and how will it affect self-storage? By Michael L. McCune In 1999, we were all so excited about the new millennium that we celebrated a year early. Now that it's the real beginning of the millennium, according to ...More
    February 1, 2001 Michael L. McCune Posted in Articles, Finance
  • State of the Industry 2001
    State of the Industry 2001Will self-storage's good fortune continue? By Barry Morris After a slow beginning, the 1990s became a decade of unprecedented prosperity for the self-storage industry. New properties emerged in many markets, bringing with them burgeoning consumer ...More
    January 1, 2001 Barry Morris Posted in Articles, Development, Finance, Technology
  • Show Me the Money
    Show Me the MoneyPreparing yourself and your property for financing By R.K. Kliebenstein What should an owner do before refinancing or applying for a construction loan? What are the expectations? Are you ready? This article will help prepare you to work with a lender so he ...More
    November 1, 2000 R.K. Kliebenstein Posted in Articles, Finance