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Interest Rates are on the Rise

July 20, 2017

Recently, the Chair of the Federal Reserve shared an optimistic outlook on the U.S. economy along with her concerns about inflation. While delivering her overview of the state of the nation’s economy she maintained that the Fed intends to raise interest rates at least one more time this year, but did not disclose any information as to when. With three (3) interest rate increases since Dec. 2016 and one on the horizon, this will more than likely affect self storage values. If selling your facility is in the near future, now might the ideal time.

If you would like to discuss this article or values in your market, please feel free to call me at (806) 839-6879 or via email at jowens@commercialbrokeragefirm.com.

John Owens

Self Storage Market Update

June 22, 2017

As expected last week, the Federal Reserve announced a quarter-point increase in interest rates. Cap Rates have risen slightly across the nation, with increases ranging from 0.25% to 1.00% which is a direct correlation to the three (3) interest rate increases in the past seven (7) months. What does this mean for the self storage industry? As long as operators continue to show overall growth in NOI, I think we will continue to see investor demand and financing for self storage stay strong. Keep an eye on metrics such as interest rates, supply/demand ratios, and property taxes. Major upward adjustments to these metrics will play the largest role on the future of our industry and will have the greatest impact on property value.

If you would like to discuss values and trends in your market, please feel free to call me at (806) 839-6879 or via email at jowens@commercialbrokeragefirm.com.

John Owens

What to Expect in 2017

December 8, 2016

A recent article in the Wall Street Journal entitled "Defaults Rise in Key Sector of Real Estate" suggests that commercial real estate borrowing could be changing. The article outlines the current interest rate environment and the new Dodd-Frank and risk-retention regulations. How does this affect self storage? If interest rates continue to rise, Cap Rates will adjust upward thus creating lower property values. If selling your facility is in the near future, now might the ideal time.

If you would like to discuss this article or values in your market, please feel free to call me at (806) 839-6879 or via email at jowens@commercialbrokeragefirm.com.

John Owens

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