A Look in the Mirror

Today’s real estate markets, including self storage, are very slow. Sellers are hoping to get yesterday’s prices and most of the very aggressive buyers of a year ago are long gone. The remaining buyers tend to be very experienced self storage owners and they are being very cautious. Thus the market for buying and selling self storage is slower and a lot more difficult these days. How long will it last? The fact that $1.6 trillion of CMBS loans are due to expire in the next five years may help define the period. History tells us that real estate cycles are almost always longer than we expect, and the normal cycles are usually about three years depending on the location. However, brutal experience reminds me that they can last much longer.

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