|
Overview Boatner & Associates specializes in self-storage development property and facility development. For several years we have been investors, developers, owners and operators of multiple self-storage facilities. This gives us a very unique perspective in the self-storage industry. Our abilities go well beyond the sale of property or the brokerage of self-storage facilities. As hands-on owners and operators we can provide unique and innovative ways to maximize your self-storage investments. Introduction to Self-Storage Self-storage facilities are an excellent investment choice for those looking for commercial real estate investment properties. Over the past decade, there has been an increased interest in the self-storage industry due to ease of financing, stable returns, increased monthly rental rates, strong tenant demand, and good capitalization rates. As of December 2005, there were more than 44,000 separate facilities totaling 1.5 billion square feet, with a market value of approximately $120 billion as per the Self-Storage Associations 2005 demand study. The opportunities are ripe for picking, and savvy investors will be on the look out for unused parcels of land located near business districts as well as new family housing additions. The self-storage industry is currently attracting a wide array of investors. The stable returns and growing demand for self-storage is appealing to more and more institutional investors. Recently, Extra Space Storage and Prudential Real Estate investors bought Storage USA's 458 facilities for $2.3 billion from GE Commercial Finance. Public ownership and consolidation with the intention of forming new REITs has increased rapidly in the self-storage sector. The potential for future consolidation for the self-storage industry is great. The top 10 companies, which include several REITs, own approximately 11.5% of the country's self-storage facilities as per the Self-Storage Association. Despite the industry's current growth and consolidation, small owners still control the majority of the market. Obviously this creates an opportunity for those wishing to develop and sell a self-storage facility. According to the Self-Storage Association, the cap rate of return for the entire self-storage sector averaged 8.5% to 9.0% in 2005. Institution quality assets currently averaged from 6.75% to 7.5% in that same period. Capitalization rates are not expected to increase anytime soon largely due to the stabilization of external interest rates. More Information 
|
