You know you've arrived in life when the Wall Street Journal takes an interest in you! A recent article in the Wall Street Journal discusses the value of Self Storage portfolios and discusses recent transactions that defy the normal rules for investors.
AJ Pruit writes, "Self-storage facilities, those usually drab buildings on city outskirts where people stash their old sofas, heirlooms and other keepsakes, are now the biggest-ticket properties in commercial real estate—at least by one measure closely tracked by investors."
Well, we've always been big fans of the business. It's proven profitable for Mako clients over the years. It has, however, remained somewhat off the radar of the big commercial property investors. Years ago, we used to consider Self Storage one of the commercial property investor's best-kept secrets.
Leave it to the Wall Street Journal to let the cat out of the bag!
Self Storage demand has continued to rise - and with little inventory coming into the marketplace, so too have rental rates.
With financing becoming comparatively a little easier to obtain and demand & values growing (and with them, shrinking cap rates on existing facilities) perhaps now is the time to consider building Self Storage.
To read the article on Wall Street Journal, click the link below.