Our October 28th episode features Brett Hatcher and Gabriel Coe of Marcus & Millichap’s The Hatcher Group, talking about self storage properties.
Crexi’s PRO Perspective series explores various aspects of the commercial real estate industry in conversation with some of its top CRE professionals. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate.
In this episode, Crexi’s Matt Cors sits with Brett and Gabriel to discuss the fundamentals of self storage assets, where the trajectory of the sector is headed, and how COVID has impacted activity in the self storage industry.
Key takeaways:
- Since the Great Recession, self storage property types have seen a surge in investment interest that’s only been accelerated by COVID-19’s economic impact. Most recently, Blackstone acquired Simply Self Storage from Brookfield Asset Management for $1.2 billion.
- Self storage comes in Class A, B, and C properties, which refers to the asset’s overall square footage and location.
- Developers are more often opting to build Class A, larger self storage units with higher square footage. If the demand is high enough and the market isn’t oversaturated, you’re more likely to increase your cash flow.
- When it comes to square footage, self storage is measured in rentable units instead of the overall size of the property. The units are what generate income for the property.
- As the sale price for self storage properties has increased, so too have development costs for shovel-ready self storage development sites. Many buyers take advantage of redeveloping or adding square footage to existing buildings, but great deals are still available on the market for interested developers.
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About Brett Hatcher:
Brett Hatcher has worked with Marcus & Millichap since 2006 and as a First VP of Investments since January 2017. Since beginning his commercial real estate career, Brett has successfully navigated more than 300 transactions valued at over $1.7 billion. Brett specializes in all aspects of self storage investments, from management, operations, and market conditions to an understanding of capital markets and economic trends affecting the self-storage sector.
Brett’s knowledge of the self storage industry is unparalleled and has earned him a consistent Top 10 ranking in the National Self Storage Group. Brett is the recipient of many awards, including the National Achievement Award five years running, the 7 Figure Club Award 6 years running, and both the Plaque Award the Chairman’s Award in 2018 and 2019.
About Gabriel Coe:
Gabriel Coe is a First VP of Investments with Marcus & Millichap’s The Hatcher Group. In his first four years with the organization, Gabriel has brokered over $700 million in self storage CRE transactions, with assets in 29 states. Gabriel ranked second in the National Self Storage Group’s best-of list in 2019 and has consistently ranked in the top ten since starting with The Hatcher Group in 2015. Gabriel also was ranked the #16 top investment professional at Marcus & Millichap in Q1-2019.
Gabriel’s specialized experience in the industry, extensive network, and knowledge of the self storage market help him to achieve the best possible sales and deals for his clients.
About Crexi:
Crexi is a commercial real estate (CRE) property marketing and deal management platform that combines an active marketplace for sale and lease properties with powerful property marketing, deal management, and market intelligence tools designed to help brokers, buyers, and tenants eliminate time-consuming processes and close deals faster.
