Self Storage

  • Anonymous
    Inactive
    6 years, 7 months ago #2524

    Curious about self storage modelling and underwriting. Is this in the works and, if so, when do you expect to roll this module out?

    Spencer Burton
    Keymaster
    6 years, 7 months ago #2972

    Adding functionality for modeling self storage in the Ai1 would be a simple thing. The challenge I have, is I have limited experience modeling this property type. Specifically, I’m not as familiar with the income and expense items typical with self storage. If you, or someone reading this, has a self storage operating statement you’d be willing to share, I could quickly add this property type to the model.

    Anonymous
    Inactive
    6 years, 3 months ago #2974

    Hi, Spencer:

    I have P&L statements and supporting financials from a self-storage facility I considered purchasing in 2016 (primarily dating between 2013-2015 with a couple of 2016 items). The property did not offer many amenities, but should give you a good foundation to build from. I can easily redact sensitive information and pass them along if you’re still willing to incorporate a self-storage component into the Ai1.

    Most helpful, though, might be a self-storage acquisition model I purchased at that time to aid in our decision.

    I’d rather not post the materials to this message string, but I will pass along anything that will be helpful via email or whatever medium is most conveinent.

    Love the website and am happy to contribute!

    Spencer Burton
    Keymaster
    6 years, 3 months ago #2976

    I just saw this response to the Self-storage thread – sorry for the delay! If you’re still willing, I’d love to use the Self Storage P&L statements to help build out a Self-Storage module. You can reach me at:

    https://www.adventuresincre.com/contact-spencer/

    Anonymous
    Inactive
    5 years, 9 months ago #2978

    As a self storage developer, I have found that modeling performance is very similar to MF, and using your MF module accomplishes a bulk of the work. There are some differences though. The main difference is in the lease terms: where as MF leases are expected to be 1+ years, SS leases are basically month to month. So a tenant may stay for one month or 24 months. We generally make an assumption on average length of stay (e.g. 3 months) property wide, or – if we can get the data – by unit size and type. That said, the rollovers are more frequent, and I’m uncertain if the MF module could handle a 10 year analysis where the ALOS is 3 months.

    Other differences largely include how pricing works in the industry, not just by unit size, but pricing type. Pricing type can be whether a unit is climate-controlled, direct access, 1st floor indirect access, other floor indirect access, etc. However, IMO these factors can be modeled into your MF module, as long as the unit mix reflects these distinctions.

    Anyway I too would look forward to seeing something specific for the SS industry.

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