Education

Innovative Self Storage Design: Maximizing Grade Variation

DXD's latest dual ground floor loading development in the Alamo Ranch community of San Antonio leverages basement construction for a multi-level facility with ground-level loading access.

Are We in Deflation?

Listening to Dr Peter Linneman's most recent podcast, he makes a dramatic point. We are in deflation if you remove housing, the CPI, and PCE (personal consumption expenditures). A gut check on this makes sense. Remember when egg prices went crazy?...

Bank CRE Loans Hit All-Time Highs

My first-hand experience with banks has me concluding that they are virtually shut down for new commercial real estate (CRE) loans, especially construction. Banks are not competing in a dogfight for deals. They can pick and choose what they want to...

Restaurant Performance is Consumer Sentiment

Millennials Don't Want to Live Where They Can Buy

The chart below could be titled, “The Less Attractive the City, the Cheaper the Housing.” I don't see many stories about Millennials flocking to Cleveland or Pittsburgh. I have never seenONE! When people aren't excited about living in a certain...

Home Sales Hit Historic Low

The Wall Street Journal (WSJ) recently published an article highlighting that US home sales hit a 30-year low. We all know the reasons: high interest rates, new construction cannot keep up with the demand, and...

Industrial, Multifamily, Self Storage Industries Stare Down Oversupply Issues

John Chang, with Marcus & Millichap, does a good job framing up the state of the self storage market. I'll summarize his main points, all of which I agree with:

The Triple Net Lease Market Has Finally Busted

Triple net leases have long been the most straightforward answer for high-net-worth buyers looking to park cash or execute a 1031 exchange.

Navigating the Risks of Preferred Equity in Commercial Real Estate

The WSJ released an article highlighting that troubled mezzanine loans were the canary in the coal mine for commercial real estate.

How can Extra Space (NYSE: EXR) Raise its Same-Store Revenue Projections when Web Self Storage Rental Rates Decline?

Extra Space just raised its same-store year-over-year revenue growth projection to +2.75%-3.5%, up from +2.5%-3.5%. Compare this to the year-over-year published web rates, down -13%. Therein lies the magic of self storage. Leases are all month-to-month,...