DALLAS—A vacancy contraction of 100 basis points to 10.4% this year will leave the Southwest region poised to achieve a 3.4% increase in climate-controlled rents, according to a Marcus & Millichap self-storage report. Additionally, non-climate-controlled facilities' average asking rent climbed 3.9% in 2016. Average asking rent increased 1.4% to $1.42 per square foot in the last four quarters among climate-controlled space and 4.5% to $1.10 per square foot at non-climate-controlled facilities. The vacancy rate continued its downward trend last year, falling 70 basis points annually as job growth intensified in the metro, GlobeSt.com learns.
In response to the increased rent growth recorded the past year along with other investment factors, Crow Holdings Capital–Real Estate has an expanded investment focus on development, redevelopment and acquisitions of existing self-storage properties. Specifically, the Dallas-based asset manager of private equity real estate funds reported, since beginning targeted investment activities in August 2015, it has completed investments in approximately 24 separate self-storage transactions across its national markets. Crow Holdings' self-storage platform currently contains more than 2 million square feet of space across 19,032 units.
“We are very pleased with the rate at which we have been able to deploy capital within the self-storage space, a sector that, consistent with our thesis, has demonstrated a less volatile and cyclical quality in comparison to other asset classes while presenting attractive fundamentals moving ahead,” Ben Doherty, Crow Holdings Capital's head of self-storage investment strategies, commented. “By focusing on the event-driven nature of self storage, we look forward to working with industry and joint venture partners towards the larger goal of creating value through rental rate growth and capital appreciation.”
Crow Holdings' general self-storage investment strategy is to acquire newer vintage properties or form joint ventures to develop class-A storage properties. Specifically, Crow Holdings is targeting well-located properties that provide an opportunity for operational improvement, expansion of the existing property, and the repurposing of existing buildings and development sites, where fundamentals warrant new product.
DALLAS—A vacancy contraction of 100 basis points to 10.4% this year will leave the Southwest region poised to achieve a 3.4% increase in climate-controlled rents, according to a Marcus & Millichap self-storage report. Additionally, non-climate-controlled facilities' average asking rent climbed 3.9% in 2016. Average asking rent increased 1.4% to $1.42 per square foot in the last four quarters among climate-controlled space and 4.5% to $1.10 per square foot at non-climate-controlled facilities. The vacancy rate continued its downward trend last year, falling 70 basis points annually as job growth intensified in the metro, GlobeSt.com learns.
In response to the increased rent growth recorded the past year along with other investment factors, Crow Holdings Capital–Real Estate has an expanded investment focus on development, redevelopment and acquisitions of existing self-storage properties. Specifically, the Dallas-based asset manager of private equity real estate funds reported, since beginning targeted investment activities in August 2015, it has completed investments in approximately 24 separate self-storage transactions across its national markets. Crow Holdings' self-storage platform currently contains more than 2 million square feet of space across 19,032 units.
“We are very pleased with the rate at which we have been able to deploy capital within the self-storage space, a sector that, consistent with our thesis, has demonstrated a less volatile and cyclical quality in comparison to other asset classes while presenting attractive fundamentals moving ahead,” Ben Doherty, Crow Holdings Capital's head of self-storage investment strategies, commented. “By focusing on the event-driven nature of self storage, we look forward to working with industry and joint venture partners towards the larger goal of creating value through rental rate growth and capital appreciation.”
Crow Holdings' general self-storage investment strategy is to acquire newer vintage properties or form joint ventures to develop class-A storage properties. Specifically, Crow Holdings is targeting well-located properties that provide an opportunity for operational improvement, expansion of the existing property, and the repurposing of existing buildings and development sites, where fundamentals warrant new product.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
