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Self-Storage Valuation Group

Q1 | Specialty Practice Newsletter

Colliers International Valuation & Advisory Services

Colliers Advantage:

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• Internal MAI Review

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Local Expertise Leveraging International Presence Colliers International Valuation & Advisory Services (CIVAS) is a

leading provider of real estate valuation and consulting services. Our

Self-Storage Valuation Group is comprised of market experts

nationwide. Whether a single property or a portfolio of assets across

the world, CIVAS’ Self-Storage Valuation Group has the depth of

valuation experience to create superior results.

To learn how CIVAS can meet your unique office property valuation

and advisory service needs, contact us today.

www.Colliers.com/ValuationAdvisory Page | 1


Q1 | SELF-STORAGE NEWSLETTER COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES

COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES

SELF-STORAGE NEWSLETTER

Self-Storage Valuation Group Colliers International Valuation & Advisory Services (CIVAS) is a leading provider of real estate valuation

and consulting services. Our Self-Storage Valuation Group is comprised of market experts nationwide.

Whether a single property or a portfolio of assets across the world, CIVAS’ Self-Storage Valuation Group

has the depth of valuation experience to create superior results. With a highly efficient valuation system,

CIVAS has built a reputation for excellence, customer service, and responsiveness. To learn how CIVAS

meets your unique self-storage property valuation and advisory service needs, contact us today.

(Continued on page 2)

(Continued on page 3)

2013 Economic & Real Estate

Outlook: Déjà vu or Vuja de? By: KC Conway, MAI, CRE

Executive Managing Director,

Colliers’ Market Analytics

Will 2013 develop pretty much like 2012 and 2011 (above

trend GDP in first-half of the year to then lose momentum

and turn-in a below 2.0 percent GDP), or will it be very

different? In some respects, 2013 will be Déjà vu.

However, 2013 is more likely to be more Vuja de (not

seen this before). What are the thirteen 2013 items to

monitor that will define how it all plays out for commercial

real estate?

1) Congressional Dysfunction

2) Debt-to-GDP and U.S. Credit Rating

3) Jobs 150 or better

4) ICEE vs. FIRE

5) U-3 vs. U-6: QE goes to the victor

6) Bernanke’s Balance Sheet “Golden Parachute”

7) 10-Year Treasury and Libor in a QE vs. Austerity battle

8) Autos 15 million – Drive, Neutral or Park?

9) Housing: NAHB says “Not Another Housing Bubble””

10) Rail-Time Indicators - spring forward or fall back?

11) CMBS 10/75

12) New CRE Supply vs. Demand/Job Growth

13) ONEi is where macro-economics gets translated local

Congressional Dysfunction: The market needs clarity

after two years of harmful “UV” rays (uncertainty and

volatility). Unfortunately, the early 2013 indications are

Congress remains incapable of making an assault on

Storage Income Is Not

Everything By: Jeffery R. Shouse

Executive Managing Director

National Practice Leader Our self-storage team at Colliers values hundreds of

facilities each year. We are able to see a wide range of

management and ownership styles. In an article written

last year, titled “Boost Your Value” we discussed 10

different ideas of how to increase revenue at your facility.

These include:

1) Market Intelligently

2) Don’t Give It Away For Free

3) Leverage Zoning

4) Maximize Unit Efficiency

5) Image Is Everything

6) Put Your Best Face Forward

7) Track Your Performance

8) Know Your Neighbors

9) Utilize Security

10) Storage Income Is Not Everything

For this article we want to focus on #10 (Storage Income

Is Not Everything). How much ancillary or miscellaneous

income does your facility produce?

In a recent Self Storage Association Workshop in

Colorado, Christopher Marr (CubeSmart), discussed

results from a recent survey conducted with storage

owners, lenders, and vendors. He asked where storage

operators should focus their energy. The answer =

revenue enhancement.

COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Q1 | SELF-STORAGE NEWSLETTER


The most successful operators in the industry have

recognized that income is not limited to only monthly rent

from their units. Typical industry standard for

miscellaneous income is 1% to 10% of total self-storage

income for the year, or $0.10/SF to $0.60/SF of a facilities

total NRSF. We surveyed several market participants

throughout the country and here is a list of the top seven

(my lucky number) miscellaneous income categories

noted. Keep in mind, there are others, but these seven

were most commonly identified: Costs of Goods Sold,

Late Fees, Deposits/Admin Fees, RV/Boat Storage, Truck

Rentals, Insurance, Billboards/Cell Towers. These

categories are discussed below.

1) Costs of Goods Sold – This is also known as

merchandise sales or retail sales. The majority of tenants

will need locks, boxes, packing materials, etc. This is just

one of the reasons you need to have good on-site staff, so

they can sell these items. In valuing this income,

appraisers typical include the income from these items,

less the costs to purchase the materials. Therefore, this

income amount is a net number.

2) Late Fees – It is common for 3% to as high as 10% of

tenants to pay late on a monthly basis, depending on the

demographic. I know a lot of property managers and

owners that would rather not “nickel and dime” their

tenants over delinquency. However, on-site staff can use

this as a negotiating tool to get tenants to pay.

3) Deposits/Administration Fees – It is common for

operators to charge one or the other. Since it is not too

hard to clean out a storage unit, deposits in many cases

act as administration fees. It was common between 2005

to 2008 to charge for both; however as the economy

declined, owners have decided to eliminate either or both

of these categories.

4) RV/Boat Storage – It is common for facilities to have a

specific area set aside for RV/Boat storage. However for

those facilities that don’t have assigned spaces, you can

typically find space throughout the facility to utilize for

RV/boat or even car storage. These spaces can rent for

$30 to as high as $150/space in some locations. It Is

important to know the regulations for surrounding

subdivisions.

5) Truck Rentals – As an operator, you either love this

income source, or can’t stand it. The positive = revenue,

the negative = additional on-site costs, training, liability,

storage, etc. Your on-site staff is the key if you decide to

play with U-Haul or Penske. One thing you need to

consider regarding valuation, if the income generated

from truck rentals starts to exceed 10%+ of your facilities

total revenue, banks/appraisers will most likely discount

the income stream, as this starts to cross the line into

business value.

6) Insurance – A recent study from an Insurance

Company in the industry indicated that approximately

40% of all facilities offer insurance to tenants, some

require it (new trend). This percentage might be a bit

skewed, but the fact is more and more facilities are

getting involved. Most insurance providers will offer a kick

back to a facility if they can sell their tenants on an

insurance plan. Again, it gets back to, do you have good

on-site staff?

7) Billboards/Cell Towers – With a good percentage of

facilities being located along major thoroughfares or

freeways, billboards or cell towers can be a great source

of revenue for a facility. Typical leases run 3-5 years with

options to extend.

Additional income generators include auctioning services,

solar panels, safe deposit boxes or mailboxes, and a host

of other creative categories. These categories won’t apply

to all facilities; however, if you can maximize a couple of

these income sources, it can impact the value of your

property. For example, I have created a Direct

Capitalization Table with a minimal amount for

miscellaneous income ($0.10/SF) and one that

maximizes this source of revenue ($0.60/SF).

The difference in value is approximately 10%. Every bit

counts!

Income Items

Net Rentable

SF

Rent/SF Per

Month Monthly Annual

Rental Income

Self Storage Units 50,000 $0.75 $37,500 $450,000

Other Income

Miscellaneous $0.10 $417 $5,000

POTENTIAL GROSS INCOME (PGI) $9.66/SF $455,000

Vacancy/Credit loss (SS Units) 15% $5,625 $67,500

EFFECTIVE GROSS INCOME (EGI) $8.23/SF $387,500

Estimated Expense Items % of EGI Total Per SF

Total 35.0% $135,500 $2.88

NET OPERATING INCOME (NOI) $5.35/SF $252,000

Cap. Rate Equals Value

7.00% = $3,600,000

ESTIMATED VALUE (rounded) $76.44/SF $3,600,000

SAMPLE DIRECT CAP TABLE (W/$0.10/SF ADD. INCOME)

Income Items

Net Rentable

SF

Rent/SF Per

Month Monthly Annual

Rental Income

Self Storage Units 50,000 $0.75 $37,500 $450,000

Other Income

Miscellaneous $0.60 $2,500 $30,000

POTENTIAL GROSS INCOME (PGI) $10.19/SF $480,000

Vacancy/Credit loss (SS Units) 15% $5,625 $67,500

EFFECTIVE GROSS INCOME (EGI) $8.76/SF $412,500

Estimated Expense Items % of EGI Total Per SF

Total 32.9% $135,800 $2.88

NET OPERATING INCOME (NOI) $5.88/SF $276,700

Cap. Rate Equals Value

7.00% = $3,952,857

ESTIMATED VALUE (rounded) $83.87/SF $3,950,000

SAMPLE DIRECT CAP TABLE (W/ADDITIONAL INCOME)

(Continued from page 1 “Storage Income is not Everything”)



banning rapid-fire, $1.0 trillion budget deficits. The “kick

the U.S. budget deficits” down the road strategy has

material consequences for job growth, GDP, inflation and

interest rates. Look for more Déjà vu (seen this before) in

2013 on this item.

Debt-to-GDP & U.S. Credit Rating: The U.S. has a

Debt-to-GDP ratio of 103 percent (3rd worst behind only

Italy at 120% and Japan at 212%). The $15.1 trillion U.S.

economy is no longer growing at a rate sufficient to

sustain $1.0 trillion annual deficits. Failure to address this

item is driving foreign investors to divest themselves of

U.S. currency and sovereign debt in favor of tangible

assets, such as commercial real estate. Look for another

year of $1.0 trillion deficits and a flood of foreign capital

into U.S. commercial real estate – Déjà vu here too.

Jobs 150k or Better & ICEE (Intellectual Capital,

Energy, & Education) vs. FIRE (Finance, Insurance &

Real Estate) : CY 2011 and 2012 evidenced average

monthly job growth of approximately 150,000 jobs. The

new reality is that maybe all the job growth potential for

the U.S. Economy (in an increasingly technological era)

is 150,000 jobs per month. The U.S. can produce a lot of

GDP out of our modern industry without a lot of workers.

The distinguishing local measure to monitor is ICEE vs.

FIRE. This year will continue to see those MSAs with an

intellectual-capital/technology, energy and/or higher

education based economy out produce jobs over

traditional finance, insurance and real estate markets by a

ratio of at least 2:1.

U-3 vs. U-6 QE goes to the victor: Unemployment will

remain a confusing metric in 2013. The official

government U-3 unemployment rate started off the year

with an uptick to 7.9%, but is likely to fall to near 7.0% by

year-end just from unemployed workers losing their

unemployment benefits. The U-6 total unemployment

rate provides a clearer picture of unemployment. It

remains stubbornly above 14% (14.4%).

Bernanke Balance Sheet & Interest Rate Benchmarks:

Many are just realizing that the composition of the FED

and FOMC (Federal Open Market Committee) is

changing. New FED presidents from fiscally conservative

districts (Kansas City and St Louis) just rotated onto the

FOMC, and Bernanke retires the end of 2013. The most

Vuja de of the 13 items is likely the change in composition

of our Central Bank. The appointments by the Obama will

have a material impact on whether the FED’s balance

sheet balloons beyond 20% of GDP ($3.0 trillion) and

interest rate benchmarks, such as the 10-Year Treasury.

Autos 15 million and Housing NAHB: Déjà vu for both

strong auto sales and the housing recovery. Finally, the

market is functioning without the artificial stimulants of

“cash for clunkers” and housing tax credits. A natural

replacement cycle is underway as Americans replace

older inefficient vehicles with newer, high-mileage

automobiles. And, the NAHB’s Improved Housing Market

Index is the best macro and locally translatable measure

of housing’s recovery. Even rising interest rates (up to

200 basis points) won’t derail these two vital economic

drivers in 2H2013.

Rail-Time Indicators: Regardless of the season in 2013,

this data series on all that moves by rail in the U.S. will

“spring forward” and reveal the true U.S. manufacturing

and trade story. Intermodal traffic continues to grow - as

does rail employment. Trade with Latin America and the

new Post-Panamax port additions along the East and Gulf

coasts will fuel the industrial real estate locomotive in

2013. Monitor the construction activity of retailers

remaking their supply-chains with new distribution and

logistics centers to reveal the industrial market

opportunities in places like Charleston SC, Baltimore,

Denver, Indianapolis, Memphis and Port Everglades.

CMBS 10/75: CMBS has made it through the first wave of

refinancings (5-7 year interest-only issuance from 2005-

2007) and held defaults to a 10% ratio. There is now a

new euphoria about increasing 2013 CMBS issuance by

50% from just below $50 billion the past 2 years to $75

billion. That is definitely Vuja de for 2013. However,

keep in mind that a second refi-wave comes ashore in

2015-2017 as the 10-year term loans securitized between

2005-2007 mature. Take advantage of this capital

markets window in 2013.

ONEi: This relatively new metric refers to the On the

Numbers Economic Index produced by America’s

Business Journals. They rate the top 102 MSAs monthly

on a broad basket of measures that define which MSAs

are in a strong recovery or growth mode. ICEE,

secondary and port markets lead in this index and

reinforce the ICEE vs. FIRE and port markets growth

stories. If you want to be number one in performance

with your real estate portfolio in 2013, make sure you are

monitoring ONEi.

THE OUTLOOK:

2013 will have its share of Déjà vu and Vuja de (not seen

this before) moments. A changing central bank and threat

of a second U.S. debt downgrade are likely to be the most

market moving events. The fundamentals in housing,

autos and manufacturing are in good shape for a strong

2H2013 rally after a weak 1H2013 due to Congressional

Dysfunction. Take advantage of the window of

opportunity being provided with improving CRE

fundamentals (declining vacancy, decent net absorption

and limited new supply) and an expansion of the capital

markets and reawakening in CMBS. This window may

not be open as wide in 2014.

(Continued from page 1 “Outlook: Déjà vu or Vuja de)



Difference Between

Prospective and As Is =

Lease-up Costs! John Griffin

Senior Valuation Specialist Purchasing a self-storage facility with low occupancy is

one way that savvy investors seek to increase their return

on investment. Whether the facility in question is new

construction, located in a saturated market, or has simply

been mismanaged; there is ample opportunity for

investors to increase value through a rise in occupancy.

However, for those new investors out there, it is important

that you are mindful of the additional costs you will be

incurring. From a valuation perspective, we can help you

navigate those costs.

When purchasing a self-storage facility that is operating

below its optimal occupancy level, there are two critical

valuation scenarios to consider: As-Is Market Value and

Prospective Market Value at Stabilization. These

scenarios are easily understood by thinking of them as a

timeline. As-Is Market Value is the value of the self-

storage facility as it sits under present conditions, and is

likely to be the purchase price paid for the property.

Prospective Market Value at Stabilization is the value of

the facility at some point in the future when it is operating

at stabilized occupancy, and is generally estimated by

capitalizing stabilized income streams and comparing to

market prices on a per square foot basis. The difference

between these two values is what is generally referred to

as the facility’s lease-up costs.

The first step in estimating lease-up costs is to determine

how far below stabilized the subject is. In order to do this,

we compare the subject’s vacancy with that of the general

market. Market vacancy is derived primarily from

competing facilities within a short radius of the subject,

along with input from local market participants and

industry norms. The vacancy indications of competing

facilities become clearer as the distance from the subject

to the competitor decreases. That being said, typical

market vacancy surveys may include facilities within a

three- to seven-mile radius depending upon the saturation

of the local market. Once a reasonable estimate of market

vacancy is known, measuring the subject’s level of

additional vacancy is simple subtraction. Vacancy is

measured in units or square feet. While measurements in

square feet allow for a more precise analysis, units are

more commonly used due to the sophistication level of the

typical market and the resulting data available to

appraisers.

Now that the subject’s above-market vacancy is known,

the subject’s lease-up costs may be calculated. Lease-up

costs encompass several categories. While there may be

some variance on a case-by-case basis, self-storage

facilities generally incur costs from the following groups:

• Rent Loss

• Additional Marketing

• Entrepreneurial profit

Additionally, depending on the physical state of the

property, capital improvements may be included. Rent

Loss is applied to the vacant units (or square feet) over

the length of time taken to absorb them, referred to as the

absorption period. Again, the best indications of

absorption rates come from local competitors and market

participants. Heavily saturated markets may see

absorption rates at or below three units per month, while

other markets with short supply have witnessed

absorption rates in excess of 20+ units per month. It is

common for a facility to lease units at a greater rate

during the beginning of its absorption period due to pent-

up demand. Additional Marketing costs are included in

the lease-up costs of a facility because, while these are

also typical operating costs, experience has shown a

need for increased marketing efforts in order to absorb

units. Finally, Entrepreneurial Profit is the investor’s

(your) reward for taking on the additional risks associated

with stabilization. Profit will vary on an individual basis,

but it should reflect the local market and the expectations

of its investors. A typical range for profit is 3% to 8% of

the Prospective Market Value. The table below

represents a sample of how this calculation occurs:

LEASE-UP ANALYSIS

Total Units 400 Units Preleased/Occupied 250

Absorption Rate 5 Units/Mo. PGI per Unit per Month $100

Stabilized Occupancy 85% Discount Rate 0.00%

1 5 85 255 $8,500 $8,500

2 5 80 260 $8,000 $8,000

3 5 75 265 $7,500 $7,500

4 5 70 270 $7,000 $7,000

5 5 65 275 $6,500 $6,500

6 5 60 280 $6,000 $6,000

7 5 55 285 $5,500 $5,500

8 5 50 290 $5,000 $5,000

9 5 45 295 $4,500 $4,500

10 5 40 300 $4,000 $4,000

11 5 35 305 $3,500 $3,500

12 5 30 310 $3,000 $3,000

13 5 25 315 $2,500 $2,500

14 5 20 320 $2,000 $2,000

15 5 15 325 $1,500 $1,500

16 5 10 330 $1,000 $1,000

17 5 5 335 $500 $500

18 5 0 340 $0 $0

Total Lost Income $76,500

Plus: Additional Marketing $20,000

Plus: Profit (5% of Stabilized Value) $100,000

Total (rounded) $196,500

*Due to number of months, no discount rate w as applied.

Units

AbsorbedMonth

Rent Loss

(per month)

PV of

Rent Loss

Units

Occupied

Units

Remaining



REGIONAL AVERAGE OCCUPANCY RATES

West Pacific Mountain National

2012

Economic 77.4% 70.3% 74.7% 74.3%

Physical 79.9% 77.0% 75.9% 79.7%

2011

Economic 75.2% 79.6% 71.8% 75.7%

Physical 77.9% 80.7% 75.8% 79.7%

2010

Economic 69.0% 69.9% 68.1% 68.3%

Physical 75.7% 75.5% 75.7% 75.7%

2009

Economic 74.7% 76.2% 72.8% 73.7%

Physical 80.3% 81.2% 79.2% 79.5%

2008

Economic 83.1% 84.0% 79.9% 77.7%

Physical 85.4% 86.4% 82.9% 80.3%

Source: Self Storage Alamnacs 2008-2013

(Only 2010-2011 Figures Include Facilities in Lease-up)

According to Carol Krendl, an experienced storage auditor

and consultant based in central California with over 25

years of storage expertise, if your facility’s physical unit

occupancy exceeds your dollars deposited (economic

occupancy) by more than 10%, you have at least one of

the following problems:

1) Too many concessions/discounts from market rent

2) Excess delinquency

3) High amount of prepaid rent

4) Issues with employee embezzlement/pilferage

5) Uncollected rents/fees

For example, if your facility has 90% of the units rented at

current rents that total $80,000 in a given month and your

deposit to the bank is $60,000, your economic occupancy

is only 75% ($60,000 ÷ $80,000). Do you know how

your facility is performing?

Wait a second, isn’t prepaid rent good? Yes, but only if

you have adequate internal controls to protect against

embezzlement/pilferage. If you aren’t sure about your

internal controls, you should call Carol or us and we’ll

connect you!

Let’s quickly focus on concessions/discounts. Doesn’t

every facility have to offer concessions/discounts and/or

move-in specials? The CIVAS storage appraisal practice

group surveys thousands of facilities each year and there

is a large variance in the concessions/discount programs

employed in the marketplace. Not all facilities offer

aggressive concessions, and often c concessions are

Boost Your Value: Improving

Economic Occupancy Rob Detling, MAI

Managing Director

Many storage facilities have no problem capturing and

retaining tenants. When their rent rolls are reviewed, they

appear to be 85% to 95% rented. Are these properties

prime acquisition targets? They won’t have any problems

achieving maximum leverage from a refinance, right?

Unfortunately, reviewing a rent roll doesn’t provide the full

picture of the property’s operations.

The level of occupancy of self-storage facilities can be

measured in different ways. While some owners measure

occupancy in terms of square footage, the most common

measurement of physical occupancy is the number of

storage units rented: a 1,000 unit facility with 900 units

rented is operating at 90% physical unit occupancy.

Another key measurement metric is economic

occupancy, which factors in discounts and concessions

as well as credit loss. Essentially, physical unit

occupancy is a “top line” concept, while economic

occupancy is a “bottom line” concept.

Typically, economic occupancy is slightly lower than

physical unit occupancy, usually 2% to 5% lower due to

discounts and concessions. The gap between economic

and physical unit occupancy widened in 2009 and 2010

as the economy struggled and more concessions were

offered to maintain physical occupancy, but decreased

from 2010 to 2011, before widening again slightly in

2012. The following table indicates the regional and

national average occupancy rates between 2008 and

2012.

Many operators and managers focus heavily on

AS-IS MARKET VALUE

Prospective Market Value at Stabilization $2,000,000

Less:

Rent Loss & Expenses $76,500

Additional Marketing $20,000

Profit (5% of Prospective Value) $100,000

Total Deductions $196,500

Total Deductions (Rounded) $200,000

AS-IS MARKET VALUE

Valuation Scenario Interest Appraised Date of Value Value

Prospective Market Value at Stabilization Fee Simple 18 Months $1,800,000

You are now able to estimate the typical lease-up costs

associated with a self-storage facility. Depending upon

the length of the absorption period, costs may be

discounted to reflect the time value of money. Remember,

you never want to underestimate the costs associated

with bringing a facility up to stabilized occupancy. After all,

one of those costs is your profit!

maintaining physical occupancy, which is vital. But

spending time and energy on improving “bottom line”

economic occupancy is why its most important.



*The facility must meet the requirements of at least 4 of the six categories ( i.e. Location, Access & Exposure, Quality etc.) to be considered within that

asset class (i.e. A, B, C, D).

offered on only a few unit sizes. How do you determine

whether to offer concessions, and what process does your

facility manager or leasing staff follow to determine what

concessions to offer (if any)?

We can’t help you implement all the proper controls and

collections processes, but here are three suggestions to

maximize economic occupancy from the CIVAS storage

appraisal team:

1) Track occupancy and rates of turnover for all your unit

types/sizes. Limit or eliminate concessions/discounts

given on unit sizes with high rates of turnover.

2) Implement an online payment system to make it

easy/safe for your customers to pay using a debit

card or one-time/recurring electronic funds transfers

(these reduce charges paid to credit card companies).

3) Learn, review and read your monthly reports, and see

if your facility management software has any add-ons

such as fraud alerts! Take advantage of the

training/support offered by your software provider.

At the end of the day, economic occupancy/collections is

the only thing that matters to a potential buyer, a lending

institution for financing, or to you investors.

Explanation of the

Colliers Rating System Jonathan M. Fletcher, MAI

Managing Director

What really makes a Class A investment? This is a

common problem faced when analyzing self-storage

facilities. The answer is often more involved than just the

quality of building materials. For example, a high quality

building in a saturated tertiary market may have the right

building materials, but lacks sound market fundamentals

to truly be classified as a top tier investment. Likewise, a

well maintained lesser quality building in a strong market

with excellent exposure may not physically be as

impressive, but a strong financial performer for years to

come and deserve an A rating.

Thus, we developed the following grid to help clarify

investment ratings. Generally, a property that has 3 or 4

characteristics in a category should be classified and

priced accordingly. Using this rating system creates a

simple, comprehensive view of a property and how it

should perform on the market or with its local competition;

giving investors an edge in their decision making process.

Colliers Rating System

A B C D

***** **** *** **Excellent Good Average Fair

Location Major MSA Secondary Market Tertiary Market Rural Location

Access & Exposure

Freeway Exposure with Good

Access or Major Thoroughfare

with Good Access and

Exposure

Major Thoroughfare with Above

Average Access and Exposure

Secondary Thoroughfare with

Average Access and Limited

Exposure

Thoroughfare with Limited Traffic

Flow and/or Poor Access

Quality

Brick, Block, or Tilt-Up, with

Paved Asphalt or Concrete

(Office Style/Multi-level)

Brick, Block,Tilt-Up, Steel or

Wood Frame with Metal Siding

and Paved Asphalt

Steel or Wood Frame with Metal

Siding and Paved Asphalt (Can

include portable units or swing

out doors)

Steel or Wood Frame with Metal

Siding and Gravel (Can include

portable units or swing out

doors)

Physical Condition

Newer Construction, Well

Maintained, No Deferred

Maintenance, Clean and

Appealing

Aging Improvements, Well

Maintained, Recurring

Maintenance, Clean

Older Construction, Fair

Maintenance, Potential for

Costly Repairs, Appeal Reflects

Age

Old or Outdated Construction,

Minimal Maintenance, High Risk

Repair, Neglected or Poor

Appeal

Occupancy/Saturation

Proven Over 90% Occupancy,

Strong Fundamentals, High

Barriers to Entry

Inconsistent Occupancy /

Average Fundamentals /

Vulnerable to New Development

Inconsistent Occupancy, Weak

Fundamentals, New

Development Risk

Operations Below 70%

Occupancy, Poor

Fundamentals, Saturated

Market - Below 75%

Amenities

On-Site Managers, Video

Surveillance, Individual Unit

Alarms, Electronic Gate,

Exterior Lighting

On-Site Managers, Video

Surveillance, Electronic Gate,

Exterior Lighting

On-Site Managers, Perimeter

Fencing, Exterior Lighting

Exterior Lighting and Limited or

No Security Features

Characteristics


SELF-STORAGE VALUATION PROFESSIONALS

www.Colliers.com/ValuationAdvisory Accelerating success.

Northern California

Jeff Shouse


National Practice Group Leader

916.724.5531 Phone

[email protected]

Southern California

Rob Detling, MAI

Managing Director

760.444.8065 Phone

[email protected]

Southern California

John Park

Valuation Services Director

949.751.2706 Phone

[email protected]

Colorado

Jonathan Fletcher, MAI

Managing Director

303.779.5503 Phone

[email protected]

Utah / Idaho

Todd Larsen, MAI

Managing Director

801.217.3095 Phone

[email protected]

Arizona

TJ Gray

Valuation Specialist

602.222.5056 Phone

[email protected]

Washington State

Stan Mastalerz

Senior Valuation Specialist

206.965.1110 Phone

[email protected]

Oregon / SW Washington

Kurt Smook

Valuation Specialist

503.542.5407 Phone

[email protected]

Hawaii

Lyon Des Pres


808.926.9595 Phone

[email protected]

Dallas / Northern Texas

Daniel Maher


214. 217.9335 Phone

[email protected]

Houston / Southern Texas

Michael Miggins, MAI,LEED AP


713.835.0090 Phone

[email protected]

Ohio / Michigan

Matt Bilger, MICP


614.540.2944 Phone

[email protected]

Missouri / Kansas

John Griffin


314.932.3917 Phone

[email protected]

Illinois

Jeremy Walling, MAI, MRICS

Managing Director

312.602.6157 Phone

[email protected]

Florida/Georgia

Jerry Gisclair, MAI, MRICS

Regional Managing Director

813.871.8531 Phone

[email protected]

Ohio / Michigan

Bruce Nell, MAI, MRICS, MICP


614.540.2942 Phone

[email protected]

Massachusetts

Robert LaPorte, CRE, MAI

Managing Director

617.330.8101 Phone

[email protected]

New York

Morgan L. Turnbow


212.355.1029 Phone

[email protected]

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