Self-Storage Defeasance Explodes!

Acquisitions of privately owned self-storage facilities by investors and publicly traded self-storage REITs are at an all-time high.
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According to recent data compiled by Fairview Real Estate Solutions, there are approximately 52,150 facilities in the self-storage industry. Low inventory of properties listed for sale over the past two years has pressured capitalization rates downward to near record lows. Coupled with income growth and lower overall rates, self-storage property values have been increasing. That appreciation has made privately owned self-storage facilities attractive to publicly traded self-storage REITs, such as Public Storage, Inc., which obtained a $700 million loan in late-2013 to fund acquisitions and development activities. Many analysts believe such infusions of capital have set the tone for 2014 and early 2015.
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Self Storage Defeasance Volume Quintuples!

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Consolidation in the self storage industry has made the property type one of the most active in 2013. Already, year-to-date 2013 aggregate self storage defeasance volume is four times the full year 2012 defeasance volume. Commercial Defeasance helped fuel the boom this week by closing a $48 million, twelve property, self storage portfolio this week. Read more