Today the self-storage market is white-hot! With billions of dollars of equity looking to be deployed in the self-storage space we are finding that many self-storge owners are receiving unsolicited offers from buyers that are aggressively looking to acquire self-storage assets “off market.” It is not uncommon for a self-storage owner to receive 3-10 phone calls a week from buyers looking to acquire their property and many times these buyers are providing the owner an off market “unsolicited offer,” with little to no property-level information. At first glance, these unsolicited offers seem too good to be true; high valuation, relatively quick closing and no broker commission. The fact is they are too good to be true! The reason that buyers are approaching sellers directly is they want to tie up the self-storage property before fully analyzing the asset or submarket and will ultimately try and buy the self-storage asset at a below market price in an uncompetitive environment. This process is putting many owners in a very bad situation and ultimately costing them millions of dollars.
II-2022: Unsolicited Offers – Don’t Fall for the Oldest Trick in the Book!
