Welcome self storage facility owners. Argus Real Estate, the leader in Self Storage purchases and sales, is pleased to present the Market Monitor, with articles on self storage purchases, self storage sales, valuation of your self storage facility and how to get started in self storage.
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Market Monitor Articles
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The Value of Professional Guidance IV 2010
Over the last two years, we have seen real estate transactions become increasingly complex and difficult to complete due to the cautious nature of buyers and, more importantly, the exceptionally cautious nature of the lending institutions. In that light, I thought that it would be helpful to explain what a real estate broker does and why we get paid to help our clients buy and sell self storage facilities.
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Third Party Management - Is It Right For Your Facility? III 2010
Spring is here and what better time to review the operations of your facility, make that capital improvement you have been putting off or overhaul the marketing plan that has been in place for the last few years? I have recently been reviewing monthly management reports and rolling 12 month operating statements and it has occurred to me that several large operators and other self storage professionals are now clamoring for management business due to the tightening economy.
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A 2010 Facility Checkup May Be the Most Important in Years! II 2010
With the flow of both equity and debt having dramatically decreased in recent years and self storage continuing to perform respectfully, watching your pennies will truly make you dollars in today's market!
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Oh, How Times Have Changed! I 2010
Over the last 12 months, the blues have certainly been present in the real estate market, and this includes self storage. Many self storage owners have seen occupancies and revenues decline, and in some cases, the value of their facility has declined by as much as 30% to 40%. This has largely been caused by the overwhelming breakdown of the credit markets and investor confidence
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It's Time to Take a Deep Breath X 2009
The holidays are upon us and as we get ready to close the books on another year, self storage owners and operators should all take a deep breath. The self storage industry has been the shining star in commercial real estate and we are starting to see signs of improvement in the overall economy.
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Self Storage Owners Have A Lot to be Thankful For IX 2009
It has no doubt been a terrible year for commercial real estate, but as a wise man once said "there must be a pony in here somewhere." Sure enough, there is a pony in there and it is self storage properties. While self storage has not been entirely immune from the effects of the recession, the colossal devastation that has visited other types of real estate has been less damaging for self storage properties. This isn't because of luck; it is because of natural, positive differences in the way that self storage works as a business.
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Want to Borrow Money from the Government Cheaper than Goldman Sachs? VIII 2009
As we get ready to close the book on another year, self storage owners may want to consider some of the tax advantages that can be realized using cost segregation and the recent changes to the regulations allowing net operating losses to be carried for up to five years. Under the new regulations, if you have paid taxes over the last few years and are now in a situation of operating at a net loss you can apply this year's losses back five years. You may also want to consider using cost segregation to increase net operating loss and gain the tax advantage
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It's the 21st Century! VII 2009
In the past, the marketing strategy for the self-storage industry has consisted of a sign, a listing in the Yellow Pages and a friendly, yet often lonely, manager behind the desk. This strategy worked just fine for a long time. In fact, there is an entire industry to prove that it worked just fine until bamÑ it all changed!
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Summer is Almost Over...But What About the Recession? VI 2009
Though it seems like the state of the economy is improving slowly, the same thing cannot be said about the state of commercial real estate (CRE). In this article, Mike McCune discusses the issues surrounding CRE but sheds some positive light on where self-storage owners stand amid the gloom.
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A Look In the Mirror V 2009
Given the obvious gravity of today's real estate circumstances, I thought it might be useful to revisit a theme in a previous Market Monitor we explored in early 2008. At that time, I introduced two very helpful tools; one to estimate the current value of your property and the other to help evaluate the competitiveness of your property.
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Now That We Have IV 2009
After reviewing the 2008 and first quarter 2009 reports for the self storage REITs as well as a survey of many of our clients, the basic self storage business of renting units is, in my estimation, doing pretty well considering the draconian economic climate! Most of the REITs were very close to, or even in some cases, a little ahead of the game as to both revenue and NOI for the first quarter of 2009.
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Is Now the Time? III 2009
Now more than ever may be the best time to capitalize on this turbulent real estate market! Don't miss Mike McCune's latest article where he explains the steps you can take to be a successful buyer!
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An Open Letter: This is Different! II 2009
Does the current economic crisis have you wondering about your options as a self storage owner? You won't want to miss this article as it explains steps that you can take to evaluate your position and weather the turmoil. Taking thoughtful action now can help put you in a proactive, rather than reactive, position!
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A Look at the New Year! I 2009
As 2009 begins, we try to gain a little perspective on the previous year and the current state of the market. While things may seem dismal, there is some optimism that can be found in the self storage industry. Read the full article to find out!
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Predator, Prey or Unaware? VIII 2008
The economic environment of the last several months has been devastating not only to the stock market but also to the commercial real estate market. In fact, the problem is even more intensified in the real estate world because not only have prices dramatically fallen, but there are virtually no economically viable loans available to owners who want to refinance or for purchasers of properties.
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A New Reality VII 2008
Like many of you, I have been watching the stock market closely in recent weeks as uncertainty surrounds the new financial "bailout" legislation. I'm still not sure if it is a good idea or a bad idea, but I am concerned about the stock market and that loans are as tough to find as ice cubes in the dessert. After thirty seven years in the real estate business I thought I had seen everything that a market could throw at us, but this time they have thrown everything at once!
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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 against inflation's ravages.
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Are These Good Times? - Maybe, If You Are a Buyer! V 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!
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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.
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A Checkup You Can't Afford to Miss III 2008
Do you want to assess the current health of you self storage facility? Looking for and evaluating certain symptoms now will help you take the actions needed to prevent problems down the road.
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The Times Have Changed II 2008
It is now abundantly clear that the so-called sub-prime mortgage debacle may be just the tip of the iceberg of the problems in the modern finance markets. Easy to obtain, cheap credit is the great lubricant that makes the engines of commerce really hum. Unfortunately the "easy to obtain" and "cheap" characteristics are the part of the formula that ultimately cause the credit system to break down.
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Self Storage Real Estate: A View From My Perch I 2008
The first month of 2008 has been beset by significant financial and political "rock and roll." If you are like me, much of it doesn't seem to fit into a neat package that helps to clarify what the rest of the year will bring. However, if you will indulge me, I will give you two thoughts on the self storage real estate market that will hopefully provide some perspective for you to consider.
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Investor Demand - Desire to Acquire and Ability to Pay IX 2007
Ray Wilson of Integra Realty Resources-Metro, the nation's largest national valuation and consulting firm, contributed his insight to this issue of the Market Monitor. Check out his article on the Impact of Class Distinction, Operating Performance and the Capital Markets.
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Time to Let Our Clients Brag VIII 2007
Argus is a confederation of well over seventy five people engaged in helping self storage owners sell and buy self storage properties across America, from Missoula, Montana to Miami Florida. It is time to recognize the achievements of our Broker Affiliates and their respective staffs.
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Have You Found Your Chair Yet? VII 2007
For the last several months we have been talking about the uncertainty in the real estate markets. In this high-stakes game of musical chairs, NOW is the time to find a chair before the music stops, bringing to an end high real estate prices and easy financing.
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A Tale of Two Markets - The REITS and the Rest of Us VI 2007
Here is some insight and perspective on what has happened with the major Self Storage REITs over the past several months.
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Change Is In The Air V 2007
Steve Clifford, Assistant Vice President and
Steve Bye, Executive Vice President/Senior Managing Director of Northmarq Capital provide in this article a summary of recent changes in the commercial real estate lending market
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Watching Your Pennies Will Make You Dollars IV 2007
Ben Vestal, Executive Vice President of Argus, discusses how you can increase the value of your asset by controlling your facility's operating expenses.
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The Art of Self Storage Arbitrage III 2007
The term arbitrage means that an investor can take advantage of some pricing or other discrepancies in the marketplace. For example, if a stock were selling on the London Exchange for $50 and on the New York Exchange for $55 it would become clear that you should buy in London and sell at the same time in New York. Do it once and you are entitled to call yourself an Arbitrageur (even though it sounds French, don't let it go to your head). Now that you are a certified Arbitrageur, how can we make arbitrage work for us in the self storage markets?
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Why in the World Would You Pay Somebody to Sell Your Facility? II 2007
It is clear that many experienced and inexperienced buyers use brokers when selling their properties, but we feel that it is important for you to know how an Argus broker can help you in buying or selling a property.
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Self Storage 2007: A Market Overview I 2007
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The Marketing Solution You've Been Waiting For! VI 2006
Learn about the benefits of listing your facility on the industry's leading self storage real estate website, SelfStorage.com
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New Jersey Carries the Water on Sales Taxes V 2006
Find out what a sales tax on your facility does for you and your business
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Self Storage Finally Gets Some Respect IV 2006
Over the years, the perceptions about self storage have changed. In this article, Mike McCune discusses why self storage may just be the best real estate investment around!
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Overbuilding - Is It Happening to You? III 2006
Overbuilding is a critical issue facing the self storage industry. We hope this article will help you recognize the potential consequences of overbuilding in your market and the steps you can take to protect your business.
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Welcome to the "Argus University of Value" II 2006
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Should You Be a Seller? Are You a Seller? I 2006
With almost 40,000 self storage facilities around the country, there is bound to be an owner who is contemplating parting with their beloved facility each and every day. However, we have found that there is a material difference in "thinking about selling" and becoming an actual seller. Read on to find out if you're a seller!
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Second Thoughts about Tax Deferred Exchanges VI 2005
Is a tax deferred exchange a smart move? After you read Mike McCune's analysis and comments regarding 1031 exchanges, you may have second thoughts about the value of 1031 exchanges.
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A Real Estate Paradox - Everyone is Happy, for Now! V 2005
Never before have prices been higher for self storage
properties - either in absolute dollars or in relation to the income they produce. This is almost exclusively the result of the lowest interest rates in 45 years.
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The Two Telling Tools: An Insight to Feasibility Studies IV 2005
In this article, Mike McCune discusses the value and nature of RCFA's (Rational and Critical Feasibility Analysis)
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Sales Tax Revisited- Is it Still a Double Demon? III 2005
There are many states in the nation where sales tax is being charged on self storage. In this article Mike McCune revisits the topic of sales tax and renews his 'call to arms' by the National Self Storage Associations to fight this issue.
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While You Were Napping, you may not have noticed the best three years in the self storage industry! II 2005
You may not have noticed the best three years in the self storage business! You didn't have to raise any rents, lower any expenses or even increase your occupancy - and you made
a lot of money over the last three years or so. Read more!
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The End of an Era - Very Serious Business! (Cap Rates & Interest Rates) I 2005
The era of low interest rates is at an end. Find out what this means for self storage
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Think You Can Outrun the Technology Wave? Think Again. November 2004
This article discussing how you can utilize the internet to boost your business!!!
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What Would You Do With $86,000 Of Additional Cash Flow? (A Cost Segregation Case Study) October 2004
We are always pleased to pass along good ideas for helping owners keep more of their hard-earned money by taking advantage of the new tax laws. We first visited with Mark de Stefanis a couple of years ago and thought we should take another look to see what is happening in this area of tax savings. Mark has consented to write this fine, clear overview and example. Read More!
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Cap Rate Trends and Interest Rates July 2004
In this article, Chris Sonne, MAI offers up more information on understanding the relationship between cap rates and interest rates.
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The Tipping Point (Self Storage Market/ Overbuilding) May 2004
In this article, Mike McCune discusses what can happen to a market in which the unlimited demand for self storage facilities comes to an end
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These Extraordinary Times (Time to sell, buy, refinance) April 2004
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What You Don't Know Can Hurt You! January 2004
What does overbuilding do to your market? Read on!
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Fractional Interest 1031 Tax-Deferred Exchanges November 2003
Do 1031 exchanges make selling real estate property more attractive?
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A Small Problem for the Industry Might Be a Big Problem for You! October 2003
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The Worm Has Turned-Let's Just Hope It Is Slow September 2003
This is an article dedicated to interest rates..
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The New Tax Laws-A Time to Sell? (Only if you are a seller!) July 2003
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An Accountant + An Engineer = More Cash Flow! May 2003
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Overbuilding...Too Much of a Good Thing? April 2003
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The Double Whammy! March 2003
Your competition just raised your taxes and reduced your facility's value. Read more about property taxes and valuation
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Sales Tax: A Double Demon February 2003
This is an article about the impact of sales tax on self storage rentals
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The Anatomy of a Deal January 2003
Read more about the inner
workings of getting a real estate deal completed
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Valuation of Self Storage Facilities December 2002
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The Greatest Financing in Forty Years October 2002
This article discusses how you can develop a smart and effective financing strategy
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The Taxman Cometh September 2002
This article discusses a few ways to defer or moderate your taxes
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The Internet as a Marketing Tool for Self Storage June 2002
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It is the best of Times and the Best of Times April 2002
A note to buyers and sellers. Is it a good time to buy or sell?
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Cross Checking Values and Replacement Costs February 2002
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Quality Counts! November 2001
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A Few More Thoughts on Selling a Property September 2001
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A Few Thoughts on Selling a Property July 2001
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The Lowdown on Recession and Self Storage May 2001
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