Self Storage Spotlight from JLL

Exceptionally strong fundamentals are driving a flood of capital to self storage. The sector is considered an inflation hedge and the development pipeline has been hampered in the near-term by supply chain constraints. 2021 was a banner year for the self storage sector and, in particular, for the public REITs that posted an average of over 17% same-store NOI growth, far surpassing other sectors. Hence, it was not a surprise that the REITs generated 78% total shareholder returns in the year, ranking among the top of the REIT sub-sector in…

Purchasing a Mismanaged Facility

Many properties that potential buyers find “off market” tend to not have the historical cash flow a bank needs to approve a transaction. The reasons could stem from poor marketing, low occupancy, lack of management or, in some cases, failure to report income incurred. When using an SBA loan product to purchase a facility with poor historical financials, the new deal can be viewed as a “start-up”, as the new buyer will be running the site differently. With realistic projections and a business plan that justifies changes in operations, the…