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.
Real Estate Roundup: The Northeast
This month, I gathered real estate experts to discuss the state of self-storage in the Northeast. Let’s hear what they have to say about their respective cities and regions. Our panel includes: Linda Cinelli, LC Realty, North Branch, N.J.; John Lisowski, Grubb & Ellis, ...More
The ‘Average Guy’
Dear ISS, I’m writing to you on behalf of the average guy. I’ve been reading your magazine for about three months now and have enjoyed all of the articles—from how to build a self-storage facility to where to build one, from financing to refinancing. But I was wondering if ...More
Financing Your Acquisition
Financing a self-storage acquisition has never been simpler, thought it can be time-consuming. Knowing about the loan products available to buyers and understanding the process will help. The first step in determining which financing best suits your needs is to define your ...More
How to Prevent Electronic-Payment Fraud
Payment fraud can be one of the most significant problems a self-storage operator faces. The scope of annual merchant-service fraud is approximately $3 billion dollars per year in the United States, or about 10 percent of total electronic transactions. As it relates to ...More
Electronic Transactions: A Year in Review
This year will go down as one of major transition for the electronic-payment industry. Several related issues have had an effect on the self-storage business and the way facilities operate: Compliance Cost Alternative payments Compliance In the credit-card arena, compliance ...More
Cutting-Edge Finance Trends
No matter your vantage point, it’s easy to see that self-storage has become a respected real estate product. According to the Self Storage Association, the industry is a $15 billion business, with more than 38,000 facilities nationwide; and these numbers are likely to ...More
Evaluating Your Merchant Account
August, Wells Fargo settled a $34 million lawsuit in which the company was accused of billing service-merchant clients without proper notice. When it comes to your merchant credit-card account, any number of complications can arise. However, you might not know there’s a ...More
You Down With OPM?
Other peoples’ money (OPM) is the key to making commercial real estate yield the greatest return on investment. More important than capitalization rates, revenue management and expense control, cash is king. And never in the modern history of finance has there been a better ...More
Startup Essentials: Financing
Do you really need a bank to start a business? What role does a bank or other financial institution play in your ongoing success? How do you build a solid business and be in position to expand or exit at will—profitably?In this column, I’ll explore these questions and ...More
Wells Fargo Financial Leasing Inc.
With interest rates still low and property values climbing toward the sky, industry experts agree self-storage is an excellent investment. When people want to enter the business or existing owners wish to expand, one of their first concerns is where to find the money. ...More