Farrell Realty Advisors has an in-depth knowledge base of every facet of the industry, offering premiere valuation and consulting services to the self storage community throughout the country. As this industry has remained the fastest growing sector within the US Commercial real estate industry for the last 30 years, we are dedicated to remaining on forefront of self-storage market trends to offer superior valuation and consulting services to market participants.
“First generation” self-storage emerged over 150 years ago in England, as British bankers sought to safeguard valuable possessions as customers embarked on long journeys. For the next century, as this concept pervaded, self storage properties were vastly large comprised of warehouses, growing up to 10 stories and operated with freight elevators and forklifts. Although effective, rising costs and inconvenience led to the development of a new concept.
In 1965, the first “secondary generation” self storage facility was developed in Houston, Texas, which led to the construction of row buildings and conversions of older buildings. As the marketplace accepted the concept, the demand for the product opened a window of opportunity as developments began to spread throughout the United States and Canada.
In recent years, the “third generation” of self-storage has emerged as the industry began to shift, becoming more retail in nature with locations in retail corridors, along with multi and single-family communities. As a result, new developments are greatly influenced by submarket demographics as well as aesthetic design. With these trends continuing, strong competition in local submarkets is on the rise, along with land acquisition and development costs.
As of first quarter 2007, there were 51,223 self-storage facilities across the nation, compared to only 6,601 as of 1985. Currently, approximately 80% of all self storage owners across the country own and operate just one facility. In fact, as of 2007, the “top 10” self-storage companies, including four publicly traded companies, own only 12.1% of the nation’s facilities.
“First” and “Second Generation” entrepreneurs had a significant advantage – no competition. Today’s proprietors, from individual owners, current and future investors and large nationwide operators, must face a much more competitive marketplace. This requires a new level of analysis and outlook in order to obtain and maintain a competitive edge for maximizing profits.
With the use of our nationwide database and cutting edge technology, we are able to offer premiere services to developers, operators and financial institutions:
FRA offers appraisal services for self storage owners, operators, lenders, insurance companies and investors across the nation. We have extensive experience in providing appraisals of individual properties, as well as small to large portfolios.
We also offer market studies for existing properties looking to expand, as well as feasibility studies for proposed facilities. We are devoted to maximizing the value of developments by performing the most thorough analysis, including statistical analytics and financial modeling.
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