Subscribe to Our Weekly Newsletter
ISS is the most comprehensive source for self-storage news, feature stories, videos and more.
Marcus & Millichap Release 2006 Self-Storage Report
Real estate investment brokerage company Marcus & Millichap released the results of its 2006 Self-Storage Research Report, which shows storage continues to be a desired asset class among investors.
May 9, 2006
1 Min Read
Real estate investment brokerage company Marcus & Millichap released the results of its 2006 Self-Storage Research Report, which shows storage continues to be a desired asset class among investors. Following is an executive summary of report findings:
Strong net-migration, job growth and the housing boom lured investors to the West in 2005. Self-storage sales volume more than doubled to $600 million
Despite natural disasters, sales in the south-central region increased by 10.5 percent in 2005. The median price rose 10.5 percent to $45.58 per square foot.
Portfolio sales, which account for 16 percent of national sales volume, doubled in the Southeast in 2005.
The Northwest continues to command the highest median sales price in the nation. Prices rose 8.6 percent to $82.73 per square foot in 2005.
In the north-central region, the median sales price for portfolio assets increased 61 percent in 2005, with many transactions in Ohio.
Cap rates for Class A facilities are in the 6.5-7.5 percent range. Class B properties are trading in the 7.5-8.5 percent range. Class C assets typically sell with an 8-9 percent cap rate.
Marcus & Millichap is one of the largest commercial brokerage firms in the nation. For property market research on cities nationwide, visit www.marcusmillichap.com/Research/Reports.asp.
You May Also Like
