Protecting Your Property’s Value

As self-storage brokers, we spend a lot of time thinking about the value of self storage properties.  Our conversations are usually focused on interest rates, cap rates, the timing of the real estate cycles, loan to value ratios, basis points, cost of capital, net operating income (NOI) and lots of other topics that rarely interest property owners other than when they decide to buy or sell a property.  There is a good reason most owners avoid this terminology on a daily basis: they are running a storage business!

The current market fundamentals of the self-storage business, along with historically low interest rates have pushed values to record highs and made some owners complacent. When values climb and cap rates compress, we must think ahead to what happens when the market peaks. How can self-storage owners protect their investments? This month, Ben Vestal discusses the steps that owners can take to preserve their value and take advantage of these historic market conditions.

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