www.REBusinessOnline.com August 2021 • Volume 17, Issue 6 VOLUME OF SELF-STORAGE DEALS EXPLODES By Taylor Williams number of economic, demo-graphic and bureaucratic head-winds are propelling investment in self-storage properties across Texas, such that some brokerage fi rms are on pace to have record-breaking deal vol-umes in 2021. Last year, the outbreak of COVID-19 postponed the typical leasing season of late spring and early summer. Indi-viduals and businesses grappled with economic uncertainty by tightening their purse strings. But by fall of last year, leasing and occupancy rates had rebounded, making it clear to investors that self-storage assets tended to fl ow Between concerns over rising capital gains taxes and stable returns afforded during in ationary periods, investors really like the space right now. A Bellomy & Co. recently brokered the sale of this 463-unit CubeSmart facility in Austin. A number of self-storage brokerage rms are on pace to do record deal volumes this year as more investors come to understand how well the product type performs during periods of slow economic growth. Plus, sellers are nding reasons to sell sooner rather than later. cash better than other property sec-tors. Consequently, a number of players shifted out of asset classes like retail, of-fi ce and hospitality and into the more stable self-storage space. The early months of the pandemic also coincided with the natural taper-ing off of the development cycle in Texas. Numerous submarkets in ma-jor Texas cities had become overbuilt in the years leading up to 2020, and COVID-19 served as an additional gov-ernor on new supply, further bolstering leasing velocity and rent growth. And as the federal government pumped tril-lions of dollars of aid into the economy, SEE SELF-STORAGE page 20 RETAIL OWNERS MUST CREATE VALUE FOR TENANTS From investing in storefront aesthetics to negotiating shorter, more exible leases, there are several ways in which landlords can accomplish this in the post-COVID world. E By Jonathan Fishman of Bizydev the onslaught of e-commerce, further fu-eled by social distancing measures. Facing these challenges, many retail landlords have been forced to ask them-selves what advantage they provide for their tenants. Given the realities of the commercial real estate market, land-lords must explore ways to create val-ue for their tenants and seek common ground with them to keep afl oat. It’s no longer acceptable for landlords to just provide a storefront, a door and a raw space if they expect to be competi-tive in the retail leasing market today. They need to fi nd new ways to market their spaces and highlight their unique advantages over shopping online. SEE VALUATION page 22 very business-oriented publica-tion for the last 18 months has almost certainly churned out doz-ens, if not hundreds, of articles detailing how they believe COVID-19 will or has or might affect their market or industry. Real estate publications have exhaus-tively covered the deceleration of com-mercial offi ce leasing, the population outfl ow in urban cities and correspond-ing battering of the multifamily market and the lack of business travel and tour-ism resulting in catastrophic conditions for the hotel sector. And of course, analysts and experts have been quick to note the sharp decline in physical retail space success thanks to Pictured is a rendering of Post Oak Plaza, a 503,000-square-foot shopping and dining destination in Houston. The owner of the center, locally based developer Levcor, has launched a major redevelopment of the property to enhance storefronts and common areas, thereby adding value to the experience for both tenants and customers. INSIDE THIS ISSUE Hirings, Promotions and Other Personnel News From Across the State page 7 How Healthcare Developers Can Maximize Marketability of Their Assets page 19