Receiving too many Off-Market Offers?
Hi this is Danny Cunningham with the Karr Self-Storage Team here in Fort Worth, TX.
It seems that every storage owner I talk to or meet with lately tells me that they are getting bombarded by folks trying to solicit off-market offers to purchase their facility. Whether the interest is coming from a neighbor down the street, an existing storage owner or investor, or a broker, it's clear in every case that the owner is receiving way more calls than usual.
The first question I get from these owners is:
"Why are so many people calling me?" The short answer is that storage properties are in high demand! Self-storage as an asset class proved its ability to weather economic uncertainty once again during the Covid-19 pandemic, and all signs point to continued growth and stability in the sector. Combine that with historically low interest rates for acquisitions, and you have a perfect storm of investors looking to purchase their first facility or grow their existing portfolio.
The next question is:
"What do I do with all this interest?" This question can sometimes be challenging to answer on the surface, as each owner's goals and motivations are unique. But if you are interested in exploring a sale or testing the waters, you need to engage a self-storage broker. One reason that so many people are trying to buy off-market is they think they can get a deal. Even if the offer price exceeds your expectations, it's highly probable that you are not getting the highest price and most favorable terms possible for your property.
When we exclusively list a property for sale, our job as self-storage brokers is to create a market wherein multiple investors compete for your property and bid against one another to ensure that you and the seller are getting the best deal possible. That is why, through our marketing efforts, we have been able to generate 10+ offers on the properties we list and close many of our listings ABOVE the asking price.
And what's even more important to me than simply picking a buyer is helping sellers navigate the choppy waters associated with contract negotiations and the escrow period. The one thing that helps us keep buyers honest more than anything else are backup offers. Rest assured a buyer isn't going to come back asking for a price reduction or a timeline extension if they know that we have 5 other buyers waiting in the wings.
The next time you're getting hounded by off-market interest, just hit the pause button and give us a call so we can sit down and diligently strategize what the appropriate next move is for you, whether that entails selling, re-financing, or even just holding tight.