The Crexi Commercial Real Estate Podcast | CRE Insights & Strategies All Things Self Storage
This episode of The Crexi Podcast features Brett Hatcher and Gabriel Coe of Marcus & Millichap’s The Hatcher Group talking about self storage properties.
The Crexi Podcast explores various aspects of the commercial real estate industry in conversation with some of the top CRE professionals in the industry. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate.
In this episode, Crexi’s Matt Cors sits with Brett and Gabriel to discuss the fundamentals of self storage assets, where the trajectory of the sector is headed, and how COVID has impacted activity in the self storage industry. Some key takeaways include:
- Since the Great Recession, self storage property types have seen a surge in investment interest that’s only been accelerated by COVID-19’s economic impact. Most recently, Blackstone acquired Simply Self Storage from Brookfield Asset Management for $1.2 billion.
- Self storage comes in Class A, B, and C properties, which refers to the asset’s overall square footage and location.
- Developers are more often opting to build Class A, larger self storage units with higher square footage. If the demand is high enough and the market isn’t oversaturated, you’re more likely to increase your cash flow.
- When it comes to square footage, self storage is measured in rentable units instead of the overall size of the property. The units are what generate income for the property.
- As the sale price for self storage properties has increased, so too have development costs for shovel-ready self storage development sites. Many buyers take advantage of redeveloping or adding square footage to existing buildings, but great deals are still available on the market for interested developers.
**A note: this conversation originally aired as an episode of Crexi’s PRO Perspective webinars. The audio is reproduced here as a podcast.**
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For show notes, past guests, and more CRE content, please check out Crexi’s blog.
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