Category: Sponsored

6 Safety and Security Issues That Should be on Your Radar

As an industry, we’ve been focusing, rightly so, on security measures to protect facilities from rising break-ins, theft and other vandalism. But there are other areas of safety and security in self-storage that are often overlooked. Read on for 6 that you don’t want to miss—and how you can easily remedy them. Delayed Repairs: Whether it’s tenant damage from backing into a door or natural disasters like the recent hurricanes, delaying repairs for damaged units leaves your units at risk because it can create a ripple effect of further damage…

JLL Capital Markets Led the Sales Effort for the Self-Storage Portfolio in Philadelphia and West Florida

JLL Capital Markets announced today that it has completed the sale of a six-property self-storage portfolio totalling 468,266 rentable square feet in the Philadelphia MSA and the Tampa, Sarasota and Fort Myers areas of West Florida. JLL’s National Self-Storage team represented the seller, a partnership between Metro Self Storage and Heitman, and procured the buyer, Andover Properties. The properties were operated and managed under the Metro Self Storage brand at the time of sale and will be rebranded to Andover’s Storage King USA brand. The portfolio consists of three properties…

Combating Crime: 5 Tools To Protect Your Property And People

Ask anyone in the self-storage industry what their biggest concern is today, and most of us will list break-ins at or near the top of the list after seeing a rise in criminal activity at facilities over the last 5 years. In fact, according to a recent survey by Janus International, 85% of self-storage owner-operators say that theft and break-ins are top of mind, and 57% report that they’re dealing with repeated break-ins. But it doesn’t have to be this way. With cutting-edge technologies and services, you can address vulnerabilities…

SBA 504 Refinance Rule Changes

The SBA’s rule changes, effective November 15, 2024, will help loan clients in a number of ways, including making it easier to refinance debt. Also, the new rule change broadens the way businesses can use funds through refinancing, especially when they’re looking to expand. 1) For Stand-Alone Debt Refinance (Without Expansion): The loan-to-value limit is now up to 90% in all cases including requests for ‘cash out’ for other business expenses and special use properties. In addition, the 20% LTV cap on cash out for other business expenses is GONE!…

For What it’s Worth – MAI versus BOV

There are countless reasons why a property owner is looking for a current market value of their real estate asset(s) – many involving life events such as death, divorce, partnership disputes/dissolutions, retirement, wealth or estate planning, debt settlement, default, recapitalization and more. Sometimes it is simply when an owner has decided to sell. Determining a current fair market value can be achieved by working with a specialized real estate broker familiar with the type of property involved or may require engaging a licensed real estate appraiser to prepare a detailed…

StorTrack’s National Transactions Report: August 2024

In recent months, investment activity in the self-storage market saw a sharp decline, with just 25 transactions totaling $131 million, a significant drop from the 1,203 deals and $6.77 billion seen in Q4-2021. This downturn, driven by rising interest rates, inflation, and oversupply concerns, has shifted investor focus to larger, high-value properties. By Q3-2024, transaction volume had plummeted by 93% compared to last year. However, the average building size per deal rose by 51%, and the average sale price surged by 171%, indicating more selective investment in high-quality assets. A…

The Challenge of Valuing Lease-Up Deals in Today’s Market

Lease-up deals have always been challenging to value compared to stabilized storage properties, but that challenge has become even greater in today’s market. With numerous macro and micro-economic variables, forecasting how a property should be expected to perform five years from now is a tough call. Below, we highlight the three most pressing questions when valuing a lease-up property. What Are Street Rates? Street rates have declined following their peak in 2020 and 2021, which presents a challenge when underwriting a lease-up property. Lease-up deals are typically underwritten with the…

Evaluating The Current Interest Rate Landscape – Was It Really That Bad To Begin With?

Today’s real estate markets, including self-storage, are slower than in years past. Much of what you hear today is all about interest rates and what the Fed is going to do next. Sellers are hoping to get yesterday’s prices and most of the buyers today tend to be very experienced self-storage owners/operators who are being much more disciplined with their underwriting. Thus, the market for buying and selling self-storage is slower and more difficult these days. How long will it last? History tells us that real estate cycles are almost…

StorTrack’s National Pricing Trends Report: August 2024

The U.S. self-storage industry, with over 65,000 facilities, remains stable but has seen a pricing decline over the past year. While some markets face oversupply, states like Florida and Arizona are growing due to population increases and the shift to remote work. Notably, the gap between street and online rates has widened by 8%, with online rates dropping 5.6% and street rates rising 1.4%. This trend reflects operators offering aggressive online discounts to attract digital customers while maintaining higher street rates to balance revenue. Dynamic pricing and online marketing are…

Maximizing Storage Doors: Maintenance Tips and When to Replace

Storage doors are a key component of any self-storage facility, and their maintenance is crucial for smooth operations, safety, and customer satisfaction. Since they’re among the first things customers notice, well-maintained doors create a positive impression, while neglected ones can deter potential clients. Caring for your storage doors ensures longevity and safety, protecting both your investment and tenants. Why Maintenance Matters Beyond aesthetics, functional doors enhance customer experience by making units easy to access. Proper maintenance can also prevent accidents caused by heavy or faulty doors. Additionally, clean, well-functioning doors…