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Understanding Self-Storage Values is Our Business!

States in which we
About PGP Valuation Inc… have recently

PGP Valuation Inc was established in 1978 and is now
one of the largest and most successful appraisal firms in Alabama
the world, with approximately 30 members of the Alaska
Appraisal Institute (MAI) and 150 professional appraisers Arizona
on staff in the United States and Canada. Arkansas
In November 2006, FirstService Corporation acquired a
controlling interest in PGP. FirstService is the parent Colorado

company of Colliers International (CMN), one of the Connecticut

largest and most respected real estate services Florida
companies in the world. FirstService also acquired a Georgia
controlling interest in MHPM Project Management, Cohen
Financial, and PKF Consulting. The result of this alliance
is a powerhouse of comprehensive client services, • An important subset of the last fact: there are some Idaho

including appraisal and consulting, commercial brokerage 27,650 small business entrepreneurs (90% of all Illinois
and management, and lending. self-storage companies) who own and operate just Indiana
one “primary” self-storage facility. Kansas
Our Role With the FDIC… Louisiana
• More than 700,000 self-storage units nationwide are Maryland
PGP Valuation is the contracted Quality Control and rented to military personnel (4% of all units);
Consulting firm for all real estate related issues for the however, in communities adjacent to US military
bases, military occupancy can range from 20%-95% Michigan
FDIC. Our Scope of Work is to provide, monitor, and
assist the FDIC in the following areas: of all rented units. Minnesota
• Appraisal Reviews • Nationally, at year-end 2008 primary self-storage Missouri
• Establish/Monitor Quality Control Process facilities employed approximately 160,000 persons, Montana
• Appraisal Ordering or an average of 3.1 employees per facility
N Carolina
• Monitor the REO and Loan Process
• Coordinate and Interact with Asset Managers • During the peak development years (2004/05) New Hampshire

and PCAM (Post closing Asset Managers) to approximately 8,700 new self-storage facilities, or New Mexico

Establish QC Protocols 480 million square feet of space were added. New Jersey
New York
This involves the REO properties (non-performing and • Gross square footage of self-storage “per capita” in Nevada
bank owned assets) non REO (performing or troubled the US (at the state level) ranges from 1.60 to 18.65
N Dakota
assets) under FDIC receivership. square feet 83.9 percent of all US counties (or
2,634 out of 3,141) have at least one “primary” self- Ohio

storage facility Oklahoma

Recent Self-Storage News… Oregon
(Info provided Self-Storage SSA)

• At year-end 1984 there were 6,601 facilities with 289.7 N Carolina

million square feet of rentable self-storage in the U.S. Understanding Operating Expenses S Carolina
At year-end 2008, there were 51,250 “primary” self- Tennessee
storage facilities representing 2.35 billion square feet. Conversation on Capitalization Rates and Texas
This represents an increase of more than 2.0 billion National Sample of Recent Sales
square feet.
What Do Those Involved in the Market Think
• The top 5 self-storage companies, including the 4 of What is Going On W Virginia
public companies (Public Storage, Extra Space, Washington
Sovran and U-Store-It – Real Estate Investment Boost Your Value! 10 Ideas to Increase the Washington, D.C.
Trusts) plus U-Haul (a public company/non-REIT),
Value of Your Property *Puerto Rico
own and operate some 4,630 self-storage facilities, or
9.0% of all primary facilities. For more information, contact the PGP Valuation Self-
Storage Team (see the back of the newsletter for contact


Accurate valuation is enhanced by solid operating history. However, it is

common to rely upon expense comparable data when valuing properties
through direct capitalization. Understanding how operating expenses vary Operating Expenses
from region-to-region is key, especially for specialized lenders and investors
looking to expand into other national markets. The table to the right is a $1.00
sampling of over 200 expense comparables located throughout the country $0.80
(evenly distributed). In addition, we have added information from the most

Per SF
recent Self Storage Almanac. Possible considerations for comparing $0.60
operating expenses are discussed below. $0.40
Real Estate Taxes: Every state has its own method for calculating property $0.20
taxes. There are several states (like Michigan and California) that reassess $0.00
facilities based on sales price. Therefore, since the definition of “Market
Value” assumes a sale, appraisers are forced to use an amount calculating

su s

in i n g

Pa t

a g t.

Ad y r o

the value of the property and the tax rate. Each local jurisdiction must be


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ili t



reviewed and understood. This can oftentimes cause headaches for

Ad e r t i

is t
refinances and construction loans.




Insurance: Rates are fairly similar across the nation. Special consideration

should be given to flood, earthquake, hurricane, or other natural disaster
areas. Typical range for this category is $0.15 to $0.25/SF. It is typical for PGP Valuation SS Almanac
lower rates to be achieved through blanket policies. It will be interesting to
see if or how much policies rise over the next couple years due to a variety of
Utilities: Both location and climate play a role in this category. Densely On-Site Management: This category is greatly impacted by location and
populated areas typically see higher energy costs. The number of climate average living expenses. Unless zoning restricts, it is common for resident
controlled units at a facility should also be considered. Typical range for this managers to live on-site. Expenses are often higher for facilities not offering
category is $0.15 to $0.40/SF. living accommodations for managers. Typical range for this category is $0.75
to $1.25/SF.
Repairs and Maintenance: This category includes cleaning out the units,
replacing doors, landscaping and any maintenance associated with the Advertisement: The amount of competing facilities and the property’s access
facility. Areas that require a snow removal expense and/or elevator servicing and exposure are primary considerations for this category. Typical range for
are typically higher. Long term expenditures are also affected by climate; this category is $0.20 to $.40/SF.
however, these expenses are typically covered in the reserves category.
Typical range for this category is $0.15 to $0.30/SF. Age and physical General/Administrative: Fairly comparable from region-to-region. This
characteristics play a part in budgeting for this category. expense includes accounting, legal fees, other professional fees, and general
administrative costs. Typical range for this category is $0.25 to $.40/SF.
Off-Site Management: This is typically done on a percentage basis (EGI).
Therefore, areas with higher rents result in higher management costs. Typical Reserves: This category takes into consideration capital improvements over
costs range from 4% to 6% of Effective Gross Income. This expense is not to a holding period. For self-storage facilities, it would typically include replacing
be confused with General/Administrative expenses. the roofs, resurfacing the streets, and replacing the fencing and storage
doors. Typical range for this category is $0.10 to $.20/SF.


There have been fewer sales in 2008 than seen in previous years. The reduced number of sales owes in some degree to the lack of credit available and the
particular aversion to risk on behalf of lenders as well as investors in the current market. The uncertainty surrounding the ultimate fallout from the downturn in
the national economy has led to a pullback from both lenders and investors. While buyers view the market with some skepticism and expect an increase in
rates, sellers have remained optimistic or are unwilling to believe that capitalization rates may have risen from historic lows of the mid-2000s when many
properties traded in the 6.0% to 7.0% range.

These rates were driven down by equally historically low interest rates spurned by the Federal Reserve Bank’s lowering of the Fed Rate to help jumpstart the
economy after the 9/11 terrorist attacks and earlier downturn in the dot.com market. While the lower rates did promote more debt by consumers and made
housing more affordable, the subsequent housing boom was not built on solid economic drivers (job gains, increase in exports, etc.) and the run-up in housing
prices was not supported. The hastily prepared, adjustable rate loans were bundled together and sold on Wall Street, incorrectly rated and sold to uninformed
investors. The US economy, that was held up primarily by the housing market (mortgage companies, lenders, developers, home-builders, contractors, etc. all
experienced substantial growth over this period) became very unstable when supply exceeded demand and home prices began to fall. Concurrently, the
adjustable rate loans began to see large rate increases that the unqualified buyers were unable to keep pace with. As housing prices declined, borrowers were
unable to refinance their loans resulting in defaults. The loans sold on Wall Street were spiraling in value and almost overnight, investors in the large conduit
loans stopped buying the paper. Lenders that were not prepared to carry and service the massive amounts of residential and commercial paper were now
burdened with loans that had no buyers at rates that were too low to sustain.

The mounting loans that were going into default coupled with the growing uncertainty surrounding the economic outlook and crashes in the global economy
caused many banks to stop lending altogether. In late 2008, the Federal Government again interceded to create TARP, a $700 billion dollar bail-out for many of
these lenders that had created the market instability, fearing that these companies collapse would spark further economic decline through job losses, lower retail
sales and a further decline in housing prices. The government’s primary concern was the lending environment had seized up after Wall Street stopped buying
paper. The uncertainty on the part of lenders continues today with some lenders quoting 600 to 2,000 basis points over the historically low Treasury rates for
new loans, with only the most qualified buyers and the safest of loans being written. At the same time, loan to value ratios decreased from 90% to 100% down to
50% to 60%.
Spring 2009 Newsletter COPYRIGHT © 2009 PGP VALUATION INC. 2

As a result, only well capitalized buyers even qualify for a loan in the current environment. While sellers have been reticent to sell, since few buyers are even
less credit are available for deals priced below 7.0%, qualified buyers have realized that they now control the market and many also fear the uncertainty
surrounding pricing. Investors have reported equity return requirements near 12% with limited risk to venture from the sidelines. Consequently, a stalemate
between buyers and sellers has taken hold of the commercial real estate market. The standoff will likely continue until sellers, some that have already lost up to
20% in book value on their investments, need to either refinance their existing loans or cannot afford the new payments as rates adjust upwards and, in either
event, are forced to sell.

In a published article by Royce Rowles of PGP Valuation Inc, Royce discusses the ratio between annual net income and sales prices.

“While the NOI may be falling at many properties (due to increased vacancy rates and/or more competitive rental rates), it almost certainly does not
account for the entire value decline in this market. Major value declines also come from the changing status quo between buyers and sellers. Buyers
have become much more patient and are expecting a much more favorable ratio between their NOI and purchase price. In other words, when there
are fewer buyers (as often is the case in a down market) capitalization rates move upward. In situations where there are recent comparable sales,
anyone valuing a property can easily extract and apply very current and realistic capitalization rates to estimate Market Value. This is because during
times of appreciation, the market is usually active. Extracting supportable capitalization rates is easy. However, when transactions are scarce finding
market capitalization rates can be significantly harder. When this happens, oftentimes sellers have an unrealistic opinion of value because they are
relying on dated capitalization rate sources.”

The following is a sample of recent self-storage sales collected from across the United States by PGP Valuation.


Name of Facility Location Sale Date Sale Price Rentable SF Price/SF Year Built Occupancy Cap Rate
Handy Storage Denver, CO 3/13/2009 $2,125,000 33,500 $63 2002 N/A 8.0%
Northwest/Southern Storage Memphis, TN 3/5/2009 $2,440,000 101,650 $24 N/A 76%-84% 8.0%
First ChoiceStorage Miami, FL 12/30/2008 $4,640,000 66,105 $70 1960 83% 7.8%
Sundance Self Storage Roseville, CA 12/12/2008 $7,700,000 96,765 $80 2002 85% 7.6%
Storage Pros Self Storage Middletown, RI 12/8/2008 $5,675,000 62,700 $91 2001 80% 7.3%
Extra Space Storage Colorado Springs, CO 11/25/2008 $5,900,000 71,434 $83 2002 94% 7.0%
Clock Tower Self Storage Kent, WA 11/24/2008 $6,333,333 58,148 $109 1988 90% 7.6%
Pak Rat Storage Durango, CO 11/1/2008 $2,300,000 35,100 $66 2006 95% 7.8%
Spare Room Self Storage Buffalo, NY 11/1/2008 $990,000 23,000 $43 2002 92% 8.3%
Storage City Sacramento, CA 10/31/2008 $2,720,000 52,379 $52 1978 64% 8.7%
Bradley Premier Storage Windsor Locks, CT 10/7/2008 $2,600,000 36,300 $72 2002 80% 7.0%
U-Stor-It Self Storage Hudson, OH 10/6/2008 $2,640,000 66,645 $40 1981 82% 8.6%
Assured Security Storage Hermiston, OR 10/1/2008 $1,850,000 37,275 $50 1991/97 90% 7.0%
Stowaway Self Storage Asheville, NC 9/30/2008 $3,400,000 54,700 $62 1985 90% 8.1%
U-Store-It Deland, FL 9/29/2008 $3,020,000 37,752 $80 1987 80 8.0%
American Self Storage New Lenox, IL 9/24/2008 $3,400,000 38,325 $89 2000 85% 7.8%
Ontario Airport Self Storage Ontario, CA 9/22/2008 $3,800,000 40,466 $94 2004 78% 7.1%
Advanced Heated Storage Stanwood, WA 9/19/2008 $2,790,000 27,150 $103 2000 100% 6.9%
Best Storage Taylor Taylor, TX 9/15/2008 $2,200,000 47,710 $46 1997 100% 6.9%
Blue Star Self Storage Lewisville, TX 9/12/2008 $4,900,000 63,671 $77 2000 88% 8.3%
Lockaway Self Storage Ontario, CA 9/11/2008 $9,600,000 80,000 $120 1987 88% 7.1%
Silverado Self Storage Las Vegas, NV 9/5/2008 $11,300,000 84,197 $134 2003 93% 7.1%
Self Storage Depot Moreno Valley, CA 9/5/2008 $7,550,000 117,640 $64 2003 75% 7.0%
Storage Post Self Storage Maple Shade, NJ 8/25/2008 $7,100,000 85,200 $83 2001 90% 7.3%
Green Bay Avenue Storage Milwaukee, WI 8/20/2008 $6,500,000 69,084 $94 1963 86% 8.4%
Extra Space Self Storage Austin, TX 8/13/2008 $4,250,000 67,045 $63 2004 87% 7.8%
Extra Space Storage Alpharetta, GA 8/08/2008 $5,125,000 57,750 $89 2000 88% 7.1%
American National Mini Storage Orland, CA 8/06/2008 $1,800,000 43,900 $41 1990 76% 8.0%
MJM Self Storage Cheshire, CT 8/6/2008 $2,600,000 72,125 $36 2002 88% 8.6%
Lockaway Storage Sunnyvale, CA 8/4/2008 $8,625,000 44,700 $193 1987 85% 7.1%
Red Lion Self Storage Vincentown, NJ 7/31/2008 $3,185,000 52,725 $60 1998 92% 7.8%
Kirby Raines Self Storage Memphis, TN 7/15/2008 $1,470,000 50,000 $28 1995 78% 7.8%
Sierra Del Oro Storage Center Corona, CA 7/9/2008 $13,100,000 95,842 $137 2004 71% 6.8%
Arrowood Mini Storage Port Orchard, WA 7/1/2008 $2,173,500 25,949 $84 1998 90% 6.7%
Stor-A-Lot Hesperia Hesperia, CA 6/20/08 $2,550,000 71,250 $36 1989 85% 8.0%
Almond Blossom Self Storage Ripon, CA 6/4/2008 $2,935,000 45,205 $65 2001 85% 6.3%
Mini-Storage Warehouse Medford, OR 5/21/2008 $6,524,000 122,000 $53 1975 99% 7.1%
Indian Self Storage Moreno Valley, CA 5/16/2008 $3,500,000 56,600 $62 2003 80% 7.6%
Newtown Storage Newtown, PA 5/16/2008 $2,400,000 32,000 $75 1997 95% 6.9%
Fisher’s Landing Storage Vancouver, WA 5/13/2008 $5,500,000 44,655 $123 1996 N/A 7.5%
U-Stor-It Self Storage Endicott, NY 5/13/2008 $2,250,000 36,130 $62 1985 85% 9.0%
Storage Mall Rush, NY 4/28/2008 $1,350,000 31,250 $43 2008 90% 8.5%
Ameri Self Storage Richland, WA 4/21/2008 $3,405,000 50,495 $67 2004 93% 7.2%
Storage One Las Vegas, NV 4/8/2008 $6,400,000 57,675 $111 1996 94% 7.1%
Scappoose Secure Storage Scappoose, OR 4/3/2008 $5,000,000 78,020 $64 1998 94% 7.5%
Safe and Sound Storage Vancouver, WA 3/19/2008 $3,100,000 43,200 $72 2006 N/A 8.0%
Extra Space Storage Farmington Hills, MI 2/12/2008 $5,500,000 80,175 $69 1987 85% 8.5%
88th Street Storage Vancouver, WA 1/28/2008 $3,500,000 41,083 $85 2006 N/A 7.9%

Spring 2009 Newsletter COPYRIGHT © 2009 PGP VALUATION INC. 3


How have the Capital markets affected lending With the single-family market struggling, how
for the self storage industry? do you think this will affect the self-storage
Like most other income property classes, with the exception of apartments,
financing for self-storage properties has been hard hit with limited capital
The self-storage industry in difficult economic times historically has
available in today's market. Because of the management intensive nature
increased in revenue and occupancy. In 2009, we have seen the same
of self-storage, lenders including banks and insurance companies who
monthly trends; but to increase revenue and occupancy we must improve
once were willing to fund loans on this property type have either taken self-
every skill; customer service, phone etiquette, collections, marketing and
storage off their lending list or have tightened up underwriting parameters
maintenance of the properties. Along with improved skills; we have to
by decreasing loan to value ratios and increasing debt service coverage
offer specials that attract the struggling families. The current specials for
requirements. In general, underwriting Cap rates exceed 8.50%, loan to
the new tenants range from 3 months 1/2 off to rent one get a second unit
value ratios cap out at 60% and debt service coverage requires a minimum
for free for 6 months. All current tenants can pay for three months and get
1.30x. Only well located, seasoned and stabilized properties with sound
the 4th month free. If any tenant asks for a discount we give 10% no
management qualify for and have access to the lowest priced capital which
questions asked and with a smile on our face. The managers must be in
in today's market comes from a small group of insurance company
continual training on customer service, collections, reporting and most
lenders. Ten year fixed rates, in general start at 7.50% with the only non-
importantly cleanliness of the property. Everything counts to gain the
recourse money coming from insurance company lenders.
tenant in a struggling market. Limited dollars means more price shopping
and good customer service comparison for the single family looking for
Kenneth M. Fox, Cohen Financial
(415) 591-3111
Daniel “Skip” Elefante, Platinum Storage Group
Due to Wall Street exiting, the financing arena for commercial real estate
(949) 770-2232
has created a huge void to be filled by banks and life insurance
companies. Since capital is at a premium, lenders have become The difficulties with the single family market translates to difficulty in the
significantly more selective with the sponsors they elect to do business self-storage market with respect to the ability of self-storage owners to
with and more conservative on their underwriting of commercial real obtain financing for their project whether it is to take out an existing
estate. In today’s lending environment, leverage on self-storage is construction loan coming due, obtain a loan in order to acquire an existing
typically in the 65% to 70% range with a 20 to 25 year amortization facility, or procure a construction loan. The popular wisdom and the media
schedule and a debt service coverage ratio of between 1.20x to 1.30x on a have been playing on the historical assumption that when people lose their
trailing 12 month basis. We are having tremendous success with larger homes they automatically move into a small apartment and store their
owner operators with significant experience and financial wherewithal with excess belongings in a storage facility. The driver in this case has more to
our life company and strong banking relationships on a national basis. do with that individual losing his/her job and thus their home. If that is the
case, it becomes difficult to find the funds to pay rent on a storage facility
James Elmore, Tavernier Capital Partners, LLC as well. The entire process, in my opinion, is driven by job losses that
(561) 998-8300 translate into home forclosures that result in banks not having funds to
loan to self-storage operators. Until we can restore the job markets I do
As the credit crunch continues to impact self-storage lending, one of the not see the banks recovering and being able or willing to return to the
biggest risks right now facing a self-storage owner is the ability to business of lending to self-storage owner/operators.
refinance. Great rates with unbeatable terms are now a thing of the past
and self-storage owners have got to reposition themselves in this new
financial environment. Owners must be fully aware of impending Kenneth E. Nitzberg, Devon Self Storage
maturities and now more than ever allow themselves plenty of time to find (510) 450-9204
financing for their facilities that are coming due. As lenders continue to
preserve the cash they have, seeking loan options sooner rather than later
is crucial and will allow an owner to fully assess all financing alternatives
and possibilities. With the conduit market being no-existent, borrower’s
should begin with their local banking relationships and extend their search
to include regional commercial banks and life insurance companies.
These lender’s criteria seem to get more stringent as the months pass with
quality and leverage being heavily scrutinized. Even your favorite local
bank might not be in the market when it comes to refinancing your current
loan. The best advice I can give is to start early and identify as many
lenders as possible up front that will give you a couple of different options
and provide backstops in case potential deals fall through the cracks.

Shane Weeks, Capmark Finance Inc.

(205) 991-6700

The conduits are gone. Regional and local banks, credit unions and life
companies are where the money is at. Also underwriting has tightened and
they are looking closely at the sponsor. Only a handful of lenders are doing
non recourse loans. Regarding financing in the upcoming year - you can
still get recourse financing at 65%. 3, 5 & 7 year terms and 25–30
amortization are available.

Chuck Mills, CEM Capital

(949) 724-1404

Spring 2009 Newsletter COPYRIGHT © 2009 PGP VALUATION INC. 4


10 Ideas to Increase Your Facility’s Value

1) Market Intelligently 5) Image is Everything – What first impression does
your facility give to potential customers? The best tenants
2) Don’t Give it Away for Free will be looking for high-quality, attractive facilities. Simple
practices such as a fresh coat of paint, pressure washing
3) Leverage Zoning doors and exteriors, picking up trash, and sweeping out
units are all affordable ways that please those paying
4) Maximize Unit Efficiency attention to detail. A few flowers and nice landscaping will
also add greatly to your facility’s curb appeal.
5) Image Is Everything
6) Put Your Best Face Forward – Who is the face of
6) Put Your Best Face Forward your facility? Your choice of staff will be the face of your
business. Managers who can give a good impression to
7) Track Your Performance potential tenants with charisma and attentiveness as well
as capture your vision of professional service will attract
8) Know Your Neighbor and retain your tenants. Capitalize on the great supply of
talent swimming in the current job market.
9) Utilize Security
7) Track Your Performance – Do you know exactly what
your facility’s weakness is? Do you know how potential
10) Storage Income is not Everything customers are being received by your staff? By keeping
detailed records on a per unit basis you can address
1) Market Intelligently – Are you maximizing your marketing dollar? individual supply and demand issues. By keeping track of
Are you thinking outside the box? A variety of marketing tools exist in your customer service and tenant flow you can notice
today's self-storage industry. In addition to traditional media types such trends that may help you capture more business. In both
as print ads and yellow page listings, an effective website can be instances, tracking your performance can help you chart
essential to capturing today's savvy consumer. Approximately 80% of your path to increased value.
your tenants will come from a certain demographic and are coming
from a select few marketing programs. Know your demographic! 8) Know Your Neighbors – Do you participate in your
Some great ideas can be found in Ken Brown’s great article in the community? All things being equal, the vendor that
February 2009 SSA Globe Magazine. establishes more relationships within the community and
becomes known for its services will always generate the
2) Don’t Give it Away for Free – Are concessions hurting or helping
most business. Get involved with businesses and
you? Concessions are a powerful tool to attract tenants. However, be
residents, and you will gain a more intimate knowledge of
careful not to advertise blanket specials. Instead, concessions should
your market area, which will allow you to customize
be strategically targeted to increase income by discounting specific unit
yourself to their needs.
types that have historically low occupancy levels. This will not only
increase the productivity of those unit types with higher vacancies, but
9) Utilize Security – Do tenants know your facility is
will also sustain the economic productivity of unit types heavily
safe? Reliable and visible security features will attract
demanded by the market.
high quality tenants and lend to the credibility of the
facility. Video surveillance, electronic gates, fencing,
3) Leverage Zoning – Are you aware of the extra value hidden in the
individual unit alarms, and on-site management are all
land beneath your facility? Knowing the zoning code that governs your
becoming standards in the self storage community.
parcel can open up opportunities to create substantial income streams
that are steady, dependable, and low-maintenance in nature. Potential
10) Storage Income Is Not Everything – How much
ways to leverage your zoning include RV storage, cellular tower’s,
ancillary income does your facility produce? The most
billboard leasing and a host of other creative ideas.
successful operators in this industry have recognized that
4) Maximize Unit Efficiency – Is the layout of your facility negatively income is not limited to the monthly rent of their units.
affecting your income generating potential? Maximize the productivity Additional income generators include RV/boat storage,
of your property. Remember that overall income trends upward as unit specialized wine storage, safe deposit boxes, and a host
sizes decrease in most markets. To the degree that the market will of other creative ideas. Also, look at miscellaneous
absorb them, partition unnecessary large units into unit sizes that rent income items which could include administration fees,
at a higher price per SF to recapture lost potential income. Again, know late fees, merchandise sales, truck rental, video
your demographics! Ending up with too many 5x5 units will result in low conference rooms, and auctioning services.
occupancy and unsatisfied income expectations.

Spring 2009 Newsletter COPYRIGHT © 2009 PGP VALUATION INC. 5


A core strength of PGP Valuation Inc has long been its Who Do I
belief in specialization. With teams of individual Contact?
specialists devoted to every major asset class, PGP
has redefined the valuation process. In particular, the
Self-Storage Team has become a model for the Jeffrey Shouse
(Sacramento Office)
industry due to its sweeping market knowledge, 916.996.0638
intimate awareness of self-storage trends, and
Royce Rowles
The Self-Storage Team is headquartered out of PGP (Denver Office)
Valuation Inc’s Roseville location under the leadership 303.217.7552
of Jeffrey Shouse, Self Storage Director. His team of
self-storage specialists has appraised facilities in nearly
Stan Mastelerz
every U.S. state. In 2008 the Self-Storage Team looks (Seattle Office)
to expand their global market share. 206.965.1110

Continual exposure to self-storage facilities is what sets

the Self-Storage Team apart from the typical, generalist Announcement…… Phil Steffen
appraiser. PGP Valuation Inc have developed a (Phoenix Office)
database of market transactions, operating expenses, For the past decade, only a few appraisal firms would 602.222.5165
and rental rates that is growing with each appraisal. be considered experts in the valuation of self storage
The impact of this wealth of information ripples facilities. In 2009, many of those experts are now
together at one company, PGP VALUATION INC. Stan Wolf
throughout the analysis and is not limited to just an (Dallas Office)
improved comparable selection. In the experienced 214.217.9333
hands of the Self-Storage Team, the database allows PGP Valuation Inc is pleased to announce the
the appraiser to track historical trends to more addition of Bruce Nell, Matt Bilger, James Scott and
accurately gauge how the self-storage industry is Chuck Schierbeck to their National Self Storage Kathryn Skiff
evolving. This equates to a report with a more insightful Valuation Group. (Vancouver Office)
market analysis, accurate projection of net operating Bruce Nell was a principal with Crown Appraisal
income, and a capitalization rate that reflects the state Group and their Director for Self Storage Valuation,
of the local market. with Matt Bilger Co-Director. They are also joined by Eric Witherall
(San Diego Office)
As we look forward to 2009, it is clear that hiring an two experienced appraisers: James Scott and Chuck 619.814.4722
appraiser with the expertise required to perform a Schierbeck. Together this team has worked on self
proper analysis is of paramount importance. In 2007 storage projects in nearly every market in the US.
and 2008, clients of all different sizes trusted the Self- Bobby Hastings
This experience is added to the industry leading Self (Honolulu Office)
Storage Team at PGP Valuation Inc with the valuation Storage Valuation Group at PGP. Together the team 808.591.2846
of approximately 400 facilities for a variety of purposes. has appraised thousands of facilities across the
Whether the value is to be used for United States, Canada and the Caribbean.
acquisition/disposition, estate planning, property tax John Griffin
dispute, or litigation, utilizing an appraiser that is an (San Francisco
expert in valuing self-storage facilities and who Office)
understands the industry is essential.

PGP Releases New Report Format: Chris Jarvis

“Asset Management Report” (Chicago Office)
PGP has created the Asset Management Report as
a simple, cost effective format to help identify
Matt Bilger
potentially weakening commercial real estate (Ohio Office)
markets, properties at risk, and loans that need early 614.540.2944
management attention.

The Asset Management Report is a regulatory

compliant appraisal in a customized format that
delivers critical information you need to limit
management and review costs and maximize return
on your loan portfolio. ASK US ABOUT IT!

Spring 2009 Newsletter COPYRIGHT © 2009 PGP VALUATION INC. 6