All Forum Posts by: Kris Bennett

@Vincent Chen thanks for asking, but I want to make sure I understand the question: are you asking what strategy owners can use to sell their facilities?

If that's the question, normally a seller (owner) can talk to a self-storage broker and go through the process of an on-market sale. Some owners use Loopnet to market their facility For Sale By Owner. Occasionally, an owner will have a friendly preexisting relationship with another local owner, and decide to give them a call to see if they would like to buy.

I hope I answered the right question. Thanks for commenting, Vincent! 

@James ONeal if you want to learn more about self-storage, I'd recommend Mike Wagner's YouTube channel and his website. Scott Meyer's is another great teacher, and so is Mark Helm. Mark also has a YouTube channel with excellent content. 

You can pick up the Self Storage Almanac...yes, literally an almanac about the self-storage industry! It will tell you everything about the market, the key firms, the markets, and so on. 

There are a lot more resources, but I hope that helps get you started! 

@Cole Bigbee that's interesting. I've been presented a few deals where the sponsor wants to build industrial condos for these types of users. It seemed like a good idea on paper, but I thought the entitlement process and development risk was too high. The metal building option you're talking about seems more palatable. Thanks for sharing! 

What types of users occupy this space? Is it mostly industrial manufacturing with some office tenants sprinkled in that don't need/want fancy space? 

Great input @David H.

Well, the deal I'm looking at is under 10K sf. I used to look at stuff over 30K with land to expand, but so is everyone else, if you know what I mean! 

@James York my partner and I look for self storage in the Charlotte market and beyond. Small deals preferred. I’ve done single-family before, but that’s not my niche. Good luck on the 4-plex! I’m sure it will be a great deal!

Hey @James York, I'm in Concord,NC as well. Welcome to BP!

@Zach Quick yeah, you're right, it's been like this for a while. Like you said, we have to stay in front of sellers to be top of mind when they decide to sell. I talked to a seller yesterday that wanted a ridiculous price for his facility which is under 100 units and has a 10% expense ratio. It was kind of comical, but we still had a good call.

@Michael Wagner You're right too! Gotta keep pounding the pavement and looking for deals like conversions, etc. We're working on a mom-and-pop right now so our fingers are crossed we can get it under contract this week.

Thanks for the contribution guys! 

@Paul Moore too early to tell what stock pricing will do over the next 3-6 months, but what happened is evidence that the word is out about storage being a "save haven" in recessions.

I'd like to point out that what happens to revenues at physical locations will vary based on market and competition. According to Yardi Matrix, revenue was down year-over-year in nearly every major market they track due to increased competition and new store openings. That won't bode well for revenues if consumers pull back spending in all areas of their lives, storage use included. If I had to guess, I think we'll see revenues and occupancy dip slightly over the next 3-6 months, but again, that's just a guess.

However, there is still an opportunity to acquire self storage facilities, especially with the low interest rate environment we're seeing. I don't see a reason to change that activity, but sellers should tamp down their pricing expectations.