Self-storage real estate broker Doug McCarron has joined the Jones Lang LaSalle (JLL) capital markets team as a managing director in the firms Los Angeles office. JLL is a financial and professional services firm specializing in real estate services and investment management. McCarrons expertise is in the acquisition and disposition of self-storage properties, financing and commercial equities.
McCarron was most recently at HFF (Holliday Fenoglio Fowler LP), where he was managing director of the companys West Coast brokerage. He previously was a partner at Storage Investment Advisors LLP. In his career, McCarron has been involved in more than $2 billion worth of self-storage property transactions nationwide.
In a recent interview with National Real Estate Investor (NREI) magazine, McCarron identified Chicago; New York; San Francisco; Seattle; Washington, D.C.; and West Los Angeles as high-performing self-storage markets. Acquisition and growth opportunities lie in strong suburban markets approximately 10 to 20 miles from downtown urban areas, he said.
At this point, the most aggressive capital is chasing deals in core urban locations, and that capital continues to drive day-one yields down to levels not seen since the peak in 2006-07, he told NREI. Investors are still hesitant to move up the risk curve, resulting in higher yields for assets located in secondary locations.
As capital continues to search for yield and underlying fundamentals continue to increase in the space, we feel that the capital will begin to migrate up the risk curve over the next 12 to 18 months. Investors that have the foresight to begin acquiring assets in these secondary locations may be rewarded considerably in the near future.
Sources:
- Equities.com: JLL Snags Self Storage Expert
