373. Self Storage Facilities Are So Much Cheaper Than You Think
The last time this happened, self storage facility values rose 385%. Nobody knew how good an opportunity buying self storage was until it was too late. That was back in 2010, after the Great Financial Crisis knocked self storage values down by 35%. Now, we’re seeing storage values fall 30%-35% in many markets, and that parallel can’t be ignored.
Did we just hit the bottom for self storage prices?
There’s a lot of distress in the self storage industry right now. High interest rates are expanding cap rates, which means prices are going down—fast. Buyers have been taking advantage, but most of the industry is still on the sidelines, waiting for the “opportunity” right in front of them. This sounds a lot like what happened in 2008.
Facilities are selling for far less than people think, and if you’re only looking at the list price a broker gives you, you could miss deals that may not come around for a decade. I’ve been screaming this from the rooftops, but nobody seems to listen, even as I buy self storage facilities for a fraction of what they cost a few years ago.
Are you going to miss the opportunity so many begged for?
What you’ll learn in today’s show:
- Why we may be hitting a bottom for self storage prices and valuations
- The eerily similar opportunity from 2008 that’s mirroring today’s self storage industry
- Why facilities are selling for far less than most self storage investors think
- The supply strain that’s keeping new self storage facilities from being built (good for buyers/owners)
- Cap rates aren’t what you think they are (don’t believe the “5%” push)
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