Inflation: Friend or Foe? VI 2008
Many of you have seen the latest reports on increasing inflation in today’s economy. Inflation is the scourge of savers, diminishing the value of nest eggs and retirement accounts. Among other things, inflation is the result of a "cheap money" policy (very low interest rates) through the political inducement of major investment banks to keep those rates low so their extreme leverage will be inexpensive and they can magnify their profits. Whatever the causes of inflation, the results are devastating for most Americans, as it is difficult to find a way to protect oneself...
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Just the Doldrums? Time to get your compass out! IV 2008
The doldrums are certainly present in today’s real estate markets, including self storage. The winds are quiet. Sellers are hoping to get yesterday’s prices and most of the very aggressive buyers of a year ago are long gone. The remaining buyers tend to be very experienced self storage owners and they are being very cautious. Thus the market for buying and selling self storage is slower and a lot more difficult these days. When the sailors hit the doldrums they all knew it was just a matter of time before the winds picked up again, but they also worried which way the wind would blow them when it started. Interestingly, that is also the case with our real estate market now. The major questions are: when will the wind blow, in which direction will it blow, and how strong will it be when it comes?...
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Are These Good Times? - Maybe, If You Are a Buyer! November 2008
Cap rates are up, prices are down, interest rates are just a little higher, competition is down and best of all, Cash on Cash returns - the Holy Grail of investing, are up!
It certainly appears to us that there may be some real opportunities for experienced self storage owners to pick up some nicely priced, quality built, well-occupied properties, earn a handsome cash on cash return, and yet have significant upside potential when the market improves. However, it is not a time for amateurs. You really need to understand the self storage business to be sure that the underlying business value is there....
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A Checkup You Can't Afford to Miss July 2008
No doubt you’ve heard that “an ounce of prevention is worth a pound of cure” and that “an apple a day keeps the doctor away.” While these clichés strike a chord when thinking about our physical health, I propose that applying the same concepts to your business will help keep your storage facility running smoothly for years to come. You may feel that if your units are renting steadily that everything is fine, but when was the last time you took an in-depth look at your local market and your facility’s competitive position? Would you be prepared to compete against a new facility in your market? In these uncertain economic times, a facility checkup is a crucial exercise to ensure a healthy future for your business....
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Market Monitor Articles
Inflation: Friend or Foe? VI 2008
Many of you have seen the latest reports on increasing inflation in today’s economy. Inflation is the scourge of savers, diminishing the value of nest eggs and retirement accounts. Among other things, inflation is the result of a "cheap money" policy (very low interest rates) through the political inducement of major investment banks to keep those rates low so their extreme leverage will be inexpensive and they can magnify their profits. Whatever the causes of inflation, the results are devastating for most Americans, as it is difficult to find a way to protect oneself...
Read Full Article
Just the Doldrums? Time to get your compass out! IV 2008
The doldrums are certainly present in today’s real estate markets, including self storage. The winds are quiet. Sellers are hoping to get yesterday’s prices and most of the very aggressive buyers of a year ago are long gone. The remaining buyers tend to be very experienced self storage owners and they are being very cautious. Thus the market for buying and selling self storage is slower and a lot more difficult these days. When the sailors hit the doldrums they all knew it was just a matter of time before the winds picked up again, but they also worried which way the wind would blow them when it started. Interestingly, that is also the case with our real estate market now. The major questions are: when will the wind blow, in which direction will it blow, and how strong will it be when it comes?...
Read Full Article
Are These Good Times? - Maybe, If You Are a Buyer! November 2008
Cap rates are up, prices are down, interest rates are just a little higher, competition is down and best of all, Cash on Cash returns - the Holy Grail of investing, are up!
It certainly appears to us that there may be some real opportunities for experienced self storage owners to pick up some nicely priced, quality built, well-occupied properties, earn a handsome cash on cash return, and yet have significant upside potential when the market improves. However, it is not a time for amateurs. You really need to understand the self storage business to be sure that the underlying business value is there....
Read Full Article
Clich here to
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