By Garrett Byrd
It was an excellent open forum webinar today where we had a live discussion on the state of our self-storage industry and where we are heading. Be sure to join us on our next live open discussion on September 5th at 1 pm EST.
Here are just a few of the highlights from today's live discussion.
1.) How are interest rates affecting our self-storage industry?
Marc Goodin, CEO of Storage Authority
If you just do a little bit of math, let's say you borrow 8 million dollars.
1% drop in the interest rate is $80,000, and that's just the interest, only payment. So if interest rates go down 2%, you're going to make an extra $160,000 a year on that one factor, and we all know rates are going to head down. It's been a slow, slow, and steady pace, but it takes time to design, develop, and build, and the biggest part of your interest rate is after construction. Then you will refinance to a lower-rate permanent loan
2.) Does it matter who is in office in the white house come November?
Marc Goodin, CEO of Storage Authority
You just don't know what any of these politicians are going to do. I've been in self-storage since 1985, when I designed my 1st facility. So I've seen 4 recessions and tons of Presidents. Not a 1 of them made a really big hill of beans. Now's a great time. It's gonna be a great time, no matter who's elected.
3.) Is square foot per capita still the leading metric to develop self-storage?
Kevin Harless Develpment Director Storage Authority
I think the idea now is to get into an area and look at rate potential. Look at what the area is doing rate, wise. Look at what the availability of occupancy is in an area. You know, it used to be where you would go into an area, and someone would say, Oh, you know this area as a 10sq ft per capita or 12 per capita. We don't want to go in there and build, because there's too much storage. But what we found is that, yeah, the area might be a high per capita. But is there any units available at any of those facilities is there still demand and how high are their rates?
To receive your personal calendar invite for your Webinar access to our Sept. 5th 2024 virtual roundtable send your first name and email address to Garrett@StorageAuthority.com
If you have any questions, don't hesitate to reach out to me, Garrett Byrd at Direct: 941-928-1354 or Garrett@StorageAuthority.com
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