04 Jul 2023
Commercial real estate development may be changed forever. with uncertainty brought on from the SVB and FRB issues, and increased requirements being levied on banks from the Office of the Comptroller of the Currency it is harder for operators in the Self Storage industry to secure construction loans.
This is unlikely to change in the coming years as well. While it is likely that rates will peak soon, they will not lower quickly and have things get back to the way they were before. Raising debt will be a difficult bottleneck to overcome for all developers. We will likely see less and less new facilities being opened in the next few years.
