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Self-Storage Valuation Group
Q1 | Specialty Practice Newsletter
Colliers International Valuation & Advisory Services
Colliers Advantage:
• On-Time Delivery
• Unmatched Quality
• Local Market Expertise
• Internal MAI Review
• National Database
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.
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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.
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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”)
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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)
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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
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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.
www.Colliers.com/ValuationAdvisory Page | 6
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*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
COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Q1 | SELF-STORAGE NEWSLETTER
SELF-STORAGE VALUATION PROFESSIONALS
www.Colliers.com/ValuationAdvisory Accelerating success.
Northern California
Jeff Shouse
Executive Managing Director
National Practice Group Leader
916.724.5531 Phone
Southern California
Rob Detling, MAI
Managing Director
760.444.8065 Phone
Southern California
John Park
Valuation Services Director
949.751.2706 Phone
Colorado
Jonathan Fletcher, MAI
Managing Director
303.779.5503 Phone
Utah / Idaho
Todd Larsen, MAI
Managing Director
801.217.3095 Phone
Arizona
TJ Gray
Valuation Specialist
602.222.5056 Phone
Washington State
Stan Mastalerz
Senior Valuation Specialist
206.965.1110 Phone
Oregon / SW Washington
Kurt Smook
Valuation Specialist
503.542.5407 Phone
Hawaii
Lyon Des Pres
Senior Valuation Specialist
808.926.9595 Phone
Dallas / Northern Texas
Daniel Maher
Valuation Services Director
214. 217.9335 Phone
Houston / Southern Texas
Michael Miggins, MAI,LEED AP
Valuation Services Director
713.835.0090 Phone
Ohio / Michigan
Matt Bilger, MICP
Senior Valuation Specialist
614.540.2944 Phone
Missouri / Kansas
John Griffin
Senior Valuation Specialist
314.932.3917 Phone
Illinois
Jeremy Walling, MAI, MRICS
Managing Director
312.602.6157 Phone
Florida/Georgia
Jerry Gisclair, MAI, MRICS
Regional Managing Director
813.871.8531 Phone
Ohio / Michigan
Bruce Nell, MAI, MRICS, MICP
Executive Managing Director
614.540.2942 Phone
Massachusetts
Robert LaPorte, CRE, MAI
Managing Director
617.330.8101 Phone
New York
Morgan L. Turnbow
Senior Valuation Specialist
212.355.1029 Phone