Finding an Appropriate Cap Rate
Within a reasonable range, the aggregate cap rate for the 12 properties owned by Global Self Storage (SELF) can be estimated. Examining the most current corporate presentation of SELF renders considerable insight into the quality of the portfolio:
- Good economic demographics.
- Good visibility and effective signage.
- Situated close to a metropolitan area.
- Relatively recently constructed.
- Typical size between 70,000 and 80,000 square feet.
- Decent hurdles for new competitors.
- Supervisory professional management and highly trained on-site personnel with emphasis on customer service.
- High-tech security with automated gates and camera