Dear Clients,
As we reflect on the challenges of 2023, we are pleased to share that despite the headwinds, it marked our third-best year since our inception in 2006, measured by dollar volume, properties closed, and transactions completed. Looking ahead to 2024, we anticipate a slightly increased transaction velocity in the self-storage market and project a continued rise in our market share, with output levels reaching new highs.
In 2023, we successfully underwrote over 1,500 properties for clients through Complimentary BOV's (Broker Opinion of Value), and we are committed to enhancing our BOV process in 2024 with even more insights to help clients navigate the rapidly changing sales market. Although we are noticing more "stressed assets", the prevalence of "distressed assets" remains lower than expected, attributed to a high percentage of owners securing attractive long-term debt.
Positive outlooks for our clients going into 2024 include robust self-storage fundamentals, outperformance relative to other CRE asset classes, and increased interest from both existing and new institutional investors. Additionally, pent-up investor demand, favorable in place rental rates, anticipated lower bank interest rates, optimism in the housing market, and a slowdown in new construction contribute to a promising landscape for self-storage over the next 2-3 years. We also share in the collective optimism regarding the economy's projected soft landing.
Thank you for your continued trust and partnership. We look forward to navigating the opportunities that lie ahead in the dynamic self-storage market.
Best Regards,
The Hatcher Coe Group
