Hi, everyone!
Scott here, with some info on the development and recovery of our industry in the nation’s north-central states. Some of the big guns from Chicago, Minneapolis, Kansas, Wisconsin and Michigan are weighing in and the information may be useful to those who are considering buying or selling properties right now. The full article can be found at: http://www.insideselfstorage.com/articles/2011/06/the-state-of-self-storage-real-estate-in-the-north-central-states-recovery-and-development.aspx.
So far, it looks like 2013 is an opportune time for buyers and sellers alike in the self-storage industry. Interest rates are still phenomenally low, which gives motivation for buyers to act now before they rise and also gives sellers a better chance of obtaining a higher price for their properties. With many operators reporting a near 90% occupancy rate, even during the economic downturn affecting almost every other industry, investors are looking favorably on the self-storage sector.
Well-maintained, properly managed and well-located facilities are definitely seeing buying interest in the north-central region. Whether this is the best time to sell, however, still comes down to the individual goals of each operator. If your facility is operating profitably, with a high occupancy rate, this could be the perfect time to sell if you are so inclined. Plenty of investors are looking for ways to secure even a 10% ROI.
As far as building new facilities, this may not be the best time. Banks are still skittish about lending and there was a problem with overbuilding in the past, where supply was ahead of demand. Rather than building new, the trend seems to be in the acquisition or expansion of existing facilities. These are both viable alternatives for those wanting to grow their current base.
Hope this information is useful. Feel free to comment on this or any other topic!
