You need to know your numbers and know someone who understands your needs. The 2023 focus shifts from how the self storage asset class has performed to how YOUR facility will perform! Self storage owners and investors have lived on a high for the past several years, as valuations increased 40-68% in many markets across the US. The increase in valuations was a result of rental rates skyrocketing, relatively flat expenses, historically low interest rates, proven performance attracting new buyers, and an overall competitive environment compressing cap rates. Basically, every NON-CONTROLLABLE has been in the storage owner’s favor. As the economic climate shifts, the game changers impacting your customers’ household are the same front runners ending the season of “participation trophies” for self storage owners. Current inflation and interest rates demand that the self storage owner become hyper focused. 2023 is the year to be intentional and diligent in your daily actions.
Action Step #1: Understand your current valuation
Action Step #2: Understand how the coming year of increased inflation and interest rates impact your valuation
Action Step #3: Strategize a plan of daily actions & an exit strategy to maximize your cashflows and valuations
At Sauls Storage Group, we specialize in maximizing the self storage owner’s return of investment, while removing the stress from the process.