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Crying Storage: Rising interest rates giving self-storage owners the blues

When High-Interest Rates Encourage Tough Decisions

A recent blog post by Steve DeRose, a senior vice president of loan originations at Starwood Mortgage Capital, profoundly delves into the impact of surging interest rates on self-storage owners. "During this time, loan coupons went from the low 3% range to north of 7% in a meteoric rise that few expected as the Federal Reserve raised rates to combat inflation". This situation is further complicated by the U.S. government's ballooning national debt, which puts more pressure on interest rates.

Faced with impending debt maturities, self-storage owners must make a tough choice: Sell or refinance their properties. DeRose thoroughly explores both options and their implications. With indicators showing rates unlikely to drop, it may be time for these owners to take decisive action and explore their debt options. Evidence suggests that the widening gap between selling prices and buyers' bids reflects the implications of escalating interest rates.

As DeRose suggests, "if you're looking down range at a loan coming due, start exploring your debt options and make plans now instead of waiting until the last 90 days of your term". For more details, [Click Here]

Summary: Steve DeRose of Starwood Mortgage Capital discusses the impact of the surging interest rates on self-storage owners who face escalating national debt and impending loan maturities. The choices are tough: refinance or sell their properties. This insightful piece provides a deep understanding of both options, the effects of higher rates, and the necessity to make strategic financial decisions. Read more to understand the intricacies and implications of these industry trends. Smart financial planning could be the key to surviving these challenging economic times.

Steve DeRose - @sderose_smc