If we do a Self Storage development we expect a 400% COC return.  

Did you expect it to be that lucrative when you made the purchase?

I would say go for it if that is what you expect to incur in the future or you are still growing.

The real estate market has shifted dramatically in recent years rising interest rates, evolving buyer and seller expectations, and fluctuating property values are keeping all of us on our toes.

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Hopefully after our conversation, you have a better feel for what to expect.  

A project like that will probably take 6 months to 1 year, so what's your expectation for future rents?

In the markets I watch, now nearly 60% of listings are EXPECTING to pay a commission, but asking the buyer to SET the buyer agent commission amount, and making that part of the offer discussion.

We believe that we are lowering risk, increasing the average expected return, and leaving the upside unchanged.   

I do not expect at least in FL that regulation will get bad enough to make STR impossible or even nearly impossible.