3. Market Consolidation Opportunity
I also like to understand what the long term runway may be in a particular asset class. According to the 2019 Self-Storage Almanac, the publicly traded companies own less than 25 percent of the self-storage market.
There is a consolidation opportunity for self-storage operators to acquire facilities owned by Mom and Pop operators and generate revenue enhancements by deploying a professional management strategy.
The performance, protection, and opportunity offered in self-storage investing could make it an attractive asset class addition to many investors’ portfolios.
*https://www.reit.com/data-research/reit-indexes/annual-index-values-returns
About Kris Benson
Kris Benson is the Chief Investment Officer of Reliant Real Estate Management. Reliant Real Estate headquartered in Roswell, GA is a vertically integrated commercial self-storage operator. Currently, Reliant is the 25th largest self-storage operator in the US with 53 properties owned across 8 states with just over 35,000 units and 4.5M rentable square feet. Reliant has sold another 21 properties and has achieved an average project-level IRR net of fees of 45 percent with an average hold time of just over three years.
Kris Benson is not an employee of Equity Trust Company. Opinions or ideas expressed are not necessarily those of Equity Trust Company nor do they reflect their views or endorsement. These materials are for informational purposes only. Equity Trust Company, and their affiliates, representatives and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal.
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