Capitalization rates reflect the degree of risk associated with an investment. Net operating income divided by the capitalization rate equals value.
Beginning in 2008, and carrying over into 2009, market conditions have led to a noticeable increase in capitalization rates.  These trends are a function of increased risk perceived by investors and more stringent lending conditions [...]

Market Intelligently
Don’t Give it Away for Free
Leverage Zoning
Maximize Unit Efficiency
Image Is Everything
Put Your Best Face Forward
Track Your Performance
Know Your Neighbor
Utilize Security
Storage Income is not Everything

1.) Market Intelligently – Are you maximizing your marketing dollar?Are you thinking outside the box? A variety of marketing tools exist intoday’s self-storage industry. In addition to traditional media types such as [...]

How have the Capital markets affected lending for the self storage industry?
Like most other income property classes, with the exception of apartments, financing for self-storage properties has been hard hit with limited capital available in today’s market. Because of the management intensive nature of self-storage, lenders including banks and insurance companies who once were willing [...]

Accurate valuation is enhanced by solid operating history. However, it iscommon to rely upon expense comparable data when valuing propertiesthrough direct capitalization. Understanding how operating expenses varyfrom region-to-region is key, especially for specialized lenders and investorslooking to expand into other national markets. The table to the right is asampling of over 200 expense comparables located [...]

(Info provided by Self-Storage SSA)
• At year-end 1984 there were 6,601 facilities with 289.7 million square feet of rentable self-storage in the U.S. At year-end 2008, there were 51,250 “primary” selfstoragefacilities representing 2.35 billion square feet. This represents an increase of more than 2.0 billion square feet.
• The top 5 self-storage companies, including the four [...]

As they say, timing and opportunity are everything!
James Murrett, MAI, SRA, an acknowledged expert in our field has joined PGP Valuation as the Director of Appraisal Standards. Jim has considered our firm to be a leading provider in the industry and has been intrigued by our service offerings, methodologies and overall standing. 
Jim [...]

Joe began his career with Anderson Consulting and BDO Seidman on the real estate side and also served as a director of marketing for Lee & Associates. He moved back over to the consulting world with a 7 year stint working for the major international brand strategy firm, Siegel & Gale. He ran their L.A. and Pacific Rim [...]

Walgreens is a national, retail drugstore chain that sells prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience food. Walgreens’ sales of pharmaceutical items account for approximately two-thirds of all sales.
Walgreens was founded in 1901, and as [...]

The tension was high at the special meeting called by the Colorado Banker’s Association in early December. The bankers were gathering to listen to Dr. Tom Hoenig, President of the Federal Reserve Bank in Kansas City, discuss the current recession and to get his predictions on how long it will last. With the reputation of [...]

“VALUATION TECHNIQUES FOR COMMERCIAL REAL ESTATE AMIDST A WORLD OF CHANGE”
Introduction

There is broad sweeping change in the mindset of the World economy caused by the credit crisis, economic downturn and long-term uncertainty, which is having a profound impact on the real estate market. Our job as appraisers is to interpret what is occurring in the [...]

Capitalization Rate Analysis
In this article, a capitalization rate for a strip center is analyzed based on (1) market extraction; (2) national survey; and (3) debt coverage/equity dividend analysis. This is an in-depth analysis that shows how a capitalization rate can be derived when little data is available in a market area. This presentation is an [...]

Many auto dealerships are going dark; over 21 in 2008 according to The Oregonian. In 2009 in the Portland Metro area alone we have seen some big names fall to darkness, most notably the Kuni Cadillac dealership that was located in Beaverton. For an auto dealership, the trade area expands beyond the immediate market area. [...]

Thanks for popping in and checking out our real estate blog. We are just getting this project off the ground so be patient as the site evolves over the next several months. Our long-term goal is to provide a unique real estate experience where users participate in discussion topics, have access to a broad range [...]

Click below to see a map of all PGP Valuation offices across the United States.

Way back in November 1996, Oregon voters passed Measure 47. This was a constitutional amendment popularly referred to as the “cut and cap” tax reform act. The “cut” aspect of the legislation referred to a reduction in taxes for the 1997-98 tax year calculated as the lesser of the 1994-95 taxes or 90 percent of the 1995-96 taxes. Bonded debt would be exempt from the calculations. The “cap” aspect of the measure restricted growth in taxes to no greater than 3 percent annually after the 1997-98 tax year.

Sales Volumes
Existing home sales were down consistently across all 4 counties in 2008 by 32 to 34%
New Detached sales followed a similar trend, with Clark, Washington & Multnomah down 29-33%, and Washington down 18%
Attached housing market faired the worse, down from 40 to 54% across all four counties.
Overall, the volume of home sales was down [...]

W. Grant Noring, Jeff Grose, MAI & Steven L. Waugh presented today at the Multnomah Athletic Club in Portland Oregon at the CCIM meeting. Below is the presentation. A copy can be downloaded by going to the Publications section of this site or you can view the presentation by clicking on “Continue Reading” below.