Self Storage and Real Estate Post Election

Written by Joe Mendola, joe@nainorwoodgroup.com

Since the election in November, what has been happening to the real estate market and the self storage industry? The stock market is fluctuating and artificial interest rates are beginning to rise for the predetermined growth in the American economy. With jobs coming back to the states and American economics dynamically rising, we have to delve into the minds of our buyers and sellers.

Since the election of President Trump, the 10-Year Treasury Bill has risen 100 basis points in interest rates and the Prime Rate has risen 50 basis points. The time is running short to take advantage of the higher property values for real estate. As the cost of carrying an asset rises, to the price for that asset falls. President Trump will be a better friend to the buyers than sellers over the next couple of years.

That being said, the demand for self storage is still very high. The window for achieving the highest property values for income producing properties is closing. The good news is that as interest rates rise, those who would like to put their equity in cash, will enjoy higher interest rates on their savings than in years past.

So, if you are thinking of selling in the next 18 months, the time is now before interest rates rise any further. You can then enjoy a higher savings rate over the next 4 years. Interest rates should rise to normal rates in a President Trump pro-growth economy.

Please contact us for a free opinion of value for your property if you choose to take advantage of this window of opportunity on our high property values before the window closes.