Self Storage Cap Rates 2017

A summary of the historical average cap rate over the past several years and a comparison to u s.

Self storage cap rates 2017.

Capitalization rates are always the over arching consideration for both buyers and sellers in the self storage industry. March 16 2017 order number. Treasury rates may be found to the left. This is largely due to the increased industry data now available that indicates the overall risk associated with owning self storage is much less than once thought.

Cap rates for self storage properties averaged 6 5 percent in the third quarter of 2018 according to real capital analytics rca a new york city based research firm. Historical high returns from the self storage. Essentially buyers and sellers use a cap rate to put a value on a self storage property. While there are concerns about new supply and changing cap rates there continues to be a significant amount of capital that is still looking to be placed in the sector.

If you were to ask an appraiser about cap rates he would say that to determine the value of a piece of real estate there are three methods. Full year 2019 the national average cost per square foot is 0 92 per month. General self storage 123 main street toledo ohio 43605 custom self storage capitalization rate sales analysis date of report. Ssa self storage demand study 2017 average storage unit cost the national average cost for all unit sizes is 87 89 per month according to sparefoot data.

That s up slightly from the. The rates from our q2 2017 survey corroborate this conclusion as the rates are slightly higher in most categories. Self storage values have appreciated between 2 to 3 over the last several years on a national basis but the implications of covid 19suggest nominal growth in the near term. The comparable sales approach the income approach and the replacement approach.

Average self storage cap rate was. Although the cap rate is a basic concept in real estate many owners and prospective buyers do not clearly understand the importance of this ratio in property valuations. Conclusion in summary we acknowledge that with any commercial real estate investment. As you can see the market has seen a constant decline in cap rates for self storage properties over the last 10 years from an average of 10 percent in 2000 to 6 25 percent in 2013.