Wrap It Up!
The last few months of 2011 were markedly different than the first 6 or 7 months of the year, especially for the real estate business and self-storage properties. Liquidity in the real estate debt market slowed in the third and fourth quarters of 2011, led by the CMBS market mid-year, and in general, banks lived up to their “scrooge” reputation by dragging their feet on making new loans. Cautious optimism is certainly present in today’s market, albeit mostly from owners who have seen their rental activity and occupancy uptick over the last 12 to 18 months. Self-storage values have rebounded from the bottom of 2009, but have also fallen off ever so slightly over the last three to six months. Let’s remember that the “real estate market” plays a bigger role in determining your facility’s value than the operation of your property. Now is the time for self-storage owners and investors to take a look at how the market is behaving as a whole, understand what pressures are present in the market and position your investments to meet your objectives.