SkyView Advisors, a Tampa, Fla.-based investment-sales and advisory firm focused on the self-storage industry, has launched a “Special Assets Group” that will advise investors, lenders, servicers and debt funds in the disposition of troubled real estate. The group will be led by Ryan Clark, director of investment sales, according to a press release.

“SkyView Advisors is constantly striving to increase value for others in the industry through our innovation and service,” officials said. “As a firm, we’re looking to leverage our strong track record of successfully executing loan sales (performing, non-performing and sub-performing), REO [real estate owned], and deed in lieu of foreclosure transactions.”

Clark has served as the company’s director of investment sales since 2017. He previously held the role of senior vice president in the firm’s investment-sales group. Prior to joining SkyView, he was an attorney in Ohio, where he represented insurance companies, real estate developers, commercial landlords and construction companies in litigation and transactional matters.

SkyView is a boutique firm specializing in self-storage acquisition, development, facility expansion and renovation, refinancing, and sales. It’s completed more than $1.9 billion in self-storage transactions across the nation. Based in Tampa, Fla., the firm also has an office in Akron, Ohio.

PTI Security Systems, a provider of self-storage security technology including software, keypads, door alarms and smart locks, has updated its StorLogix Cloud access-control software, which allows facility operators to remotely control and monitor their sites from any Internet-connected device. The upgrade offers heightened security features, advanced reporting, custom hierarchies and improvements to the user interface, according to a press release.

“Our latest release of StorLogix Cloud comes at a crucial time of uncertainty and conservative budgets, where many self-storage operations are looking to modernize their security strategy without the need for any hardware replacement,” said Thomas Brooks, managing director.

The software also allows self-storage operators to leverage PTI’s EasyCode and StorLogix Mobile apps, according to Nathan Davenport, product manager. EasyCode allows tenants to open gates and doors and view their own access activity from their mobile device. StorLogix Mobile allows facility operators to view, control and interact with their StorLogix and FalconXT access-control systems from anywhere.

PTI offers the FalconXT and StorLogix Cloud access-control systems; Apex, DigiGate and VP keypads; wireless and wired door alarms; DoorBoss electronic smart locks; and the EasyCode and StorLogix mobile apps. The company has installed more than 40,000 security systems in 30-plus countries, the release stated. It operates through two U.S. locations as well as distributors in Asia, Australia and Europe.

If you’re a self-storage operator striving to improve your facility’s online visibility, you aren’t alone. You may even know about the importance of writing regular blog content, staying active on social media, and working overtime on search engine optimization (SEO). But few of you are getting the results you want from your efforts. Even those who hire an outside firm to handle digital marketing are often disappointed when they realize their return on investment.

The unfortunate fact is digital marketing is tough work. Even if you spend every waking moment reading about the newest strategies and putting them into practice, generating qualified leads online gets harder every day.

As a rule of thumb, content marketing is widely regarded as the most effective way to improve your rankings on Google. That said, with more blogs popping up all the time and your biggest competitors hiring full-time writers to flood the Internet with articles, getting found on Google can seem like a losing battle. Enter video marketing.

Winning Position Zero With Video Content

While modern-day blogs are a dime a dozen, the number of businesses regularly putting out video content is shockingly low. Because producing video requires new skills and overcoming the fear of being on camera, most people never try. As you can probably guess, this creates a massive opportunity for those willing to take the plunge.

Not only does YouTube currently hold the position of the second-largest search engine in the world, Google’s 2006 acquisition of the video giant essentially puts it in the No. 1 spot.

If you regularly search for information on Google, you’ve probably seen a video carousel at the top of your results page more than a few times. In fact, a study by STAT Search Analytics found that an average of 41 percent of Google search-engine results pages (SERP) include a video carousel somewhere on the first two pages.

Producing video content creates a significant advantage for people looking to improve the visibility of their business online. Sitting in what’s known as “position zero” in the marketing community, video carousels are commonly featured at the very top of a SERP, sometimes even before the paid ads!

Improving Blog Performance With Video

As a bonus, blog posts with embedded video almost always outperform other posts on the same topic without. In fact, there are many SEO advantages of using video in your blog.

For starters, an engaging video tends to increase page-dwell time, one of the key metrics Google measures in determining page rank. As if that wasn’t enough, embedded videos are one of the best ways to win links to your posts.

For those unfamiliar with SEO, links are another essential contributor to Google ranking. Google looks at each link pointing to your site as a vote of confidence from the referring site that your content is high-quality and deserves to rank well. The more external links you have pointing to your site, the better it’ll perform in search.

Further, getting your content featured also earns you exposure to the audiences of the sites that present it. Adding this to the value Google places on traffic from social media sites like YouTube, video marketing may very well be the greatest opportunity for self-storage operators.

Succeeding in Video Marketing

Before you run off and buy a high-dollar DSLR (digital, single-lens, reflex) camera, there are a few important things to keep in mind.

Winning at video marketing requires a creative approach. This may seem like a no-brainer, but creativity is arguably the most critical success factor. Rather than producing the same tired videos everyone else in the self-storage industry is posting, you’ll need to think outside the box.

In brainstorming video concepts, think beyond trying to sell storage. Instead, focus your attention on bringing value to potential customers. In many cases, the most appreciated content is only loosely related to the product or service it was intended to promote. For example, rather than producing a video on your price specials for a specific month, try making one on how to maximize the space inside a small unit.

Building an audience takes time. A great video is only as good as the number of people who can find and watch it. Unfortunately, YouTube isn’t very friendly to new content producers, often burying them on the 10th page of search results for a keyword.

While there’s no magic formula to getting your videos featured overnight, the most surefire way to get there over time is by building an audience. Rather than pump out content in hopes a video will go viral, it’s better to like, comment and engage with other creators’ content regularly. Because these people share your interest in getting more eyes on their videos, they’ll likely reciprocate.  Helping others reach their goals almost always pays off in the long run.

You need thick skin. There’s no denying that people can be mean on the Internet. Empowered by the anonymity of sitting behind a computer screen, online trolls thrive on putting other people down for no apparent reason. No matter what your subject matter or focus, if you’re creating content on YouTube, you’re going to run into these people from time to time.

As much as you may be tempted to defend yourself from these unwarranted attacks, the last thing you want to do is give them any attention. Often, you’ll find that merely ignoring the naysayers is the best way to overcome their negativity. Before you let mean comments bring you down, remember that most of these people attack others out of envy or jealousy. Instead of letting their negativity discourage you, take them as a sign that you’re on the right path!

Producing Video Content

So, you’ve decided to take the plunge and start a YouTube channel for your self-storage business. Excitement aside, you’re probably wondering where to start. Fortunately, producing videos these days requires little more than a smartphone and a willingness to put yourself out there.

With modern cell-phone camera technology rivaling the capabilities of the best DSLR cameras from a few years ago, filming a high-quality video has never been easier. That said, in the interest of maximizing your production value, you may want to invest in a few key pieces of equipment. While it’s easy to go down the rabbit hole of camera gear and spending tens of thousands of dollars on a production setup, you can easily get a professional-quality rig for a fraction of that cost. It should include:

Tripod. Most videographers agree a good tripod is one of the most critical pieces of equipment you can buy. Shooting with a tripod improves the quality of your videos in several ways, such as stabilizing your shots, enabling pan shots, and allowing you to film yourself or others at a distance. With many great models available for $20 or less, a smartphone tripod is an excellent marketing investment for any self-storage marketer.

Lights. Exceptional lighting equipment is worth its weight in gold in video production. Proper lighting can make you look better on camera, giving your videos a feeling of professionalism that can’t be achieved with a smartphone alone.

Despite many studio lighting packages costing upward of $500, there are much more affordable options for a storage operator looking to step up his video-production value. In the interest of killing two birds with one stone, consider buying a light-ring kit. Containing an LED light ring, tripod, phone holder and hot-shoe adapter, these kits get you everything you need to produce studio-quality videos for less than $100.

Microphone. If you’re planning to shoot video outside or in other noisy environments, you’ll need to invest in a good microphone. If you’ll produce single-subject explainer videos, a simple lapel mic should have you covered. However, if you’re going to produce interview-style or live-action videos, it may be better to purchase a condenser or omnidirectional microphone. Regardless of the style you choose, there are a ton of good, entry-level microphones available for $50 or less.

Video-editing software. This is a must-have for anyone getting serious about producing video content. As much as we’d like to hope our raw videos will turn out great, this is rarely the case. From audio issues to lighting problems and bloopers, there are countless ways a shoot can go wrong.

Fortunately, there are many video-editing programs available to help you fix inevitable issues. In fact, if you own an Apple computer, you already have free software! Though iMovie is far from the most robust option available, it’s more than enough for most amateur editing needs.

If you’re more of a PC person, look no further than Blackmagic’s Davinci Resolve. While it doesn’t come installed on new computers, the free version is even more capable than iMovie, making it a perfect fit for someone looking to get into video marketing without spending a ton of money upfront.

Turning our attention to the paid options, Adobe’s Premiere Pro and After Effects are widely considered the industry standard for professional video editors worldwide. If you’re an Apple user, Final Cut Pro also gets top marks from video professionals, as does the paid version of Davinci Resolve.

Beyond being a powerful new way to market your self-storage facility online, many operators realize that making videos is fun! Armed with the right equipment, some perseverance and a little luck, you can use video marketing to take your business to the next level. While it won’t be easy, staying the course and improving your skills will almost always pay off.

Michael Seymour is the director of business development for Tomins, a business-insurance solution designed with entrepreneurs in mind. It offers a variety of coverages including business owner policy, general liability, commercial property, workers’ compensation and more. For more information, call 817.500.4140; e-mail [email protected]; visit www.tomins.com.

Keeping your self-storage facility sparkling clean has always been a priority to retain and attract tenants, but the stakes are so much higher now in the face of coronavirus. Knowing the infection can survive on various surfaces for hours or even days is powerful incentive. Your best effort is what customers expect; and right now, it’s what everyone who uses your business deserves.

In this thread on Self-Storage Talk, the industry’s largest online community, members are discussing how they ready empty units for their next renter. How has your protocol for this task changed? Is there a greater focus on sanitization? Do you leave paperwork, a lock or other move-in essentials in the space? See what others have to say and share your advice.

OpenTech Alliance Inc., a Phoenix-based provider of self-storage kiosks, call-center services and other technology, announced that its Insomniac CIA (Centralized Intelligent Access) cloud-based system now integrates with gate keypads from PTI Security Systems. Facility operators can now connect their existing PTI Apex or VP keypads to CIA to upgrade their access control, according to a press release. The new integration is the 10th supported by the OpenTech IoE (Internet of Everything) platform.

As remote facility management is now a key concern for self-storage operations during the coronavirus pandemic, the CIA/PTI keypad integration provides a solution with little capital expenditure, the release stated. “This will allow us to roll out touchless gate access at a much faster pace, utilizing some of our existing equipment,” said Randy Weissman, vice president of operations for iStorage, which operates facilities across 20-plus states. “Touchless entry has been well-received by our customers, especially in light of the current situation caused by COVID-19.”

CIA allows tenants to enter a storage property using the Storage Genie mobile app. The IoE Control Center also allows users to remotely open or close a gate, hold a gate open, and open it for emergencies. For operators, it provides predictive maintenance alerts based on gate-operator usage, encrypted communication between the gateway and keypad, and access-code configuration at the keypad.

Reports and real-time data provide insight to tenant behaviors such as popular times on property, length of tenant visits, tenant access events and more. This information been successfully employed by self-storage operators to enhance revenue management, settle tenant disputes, optimize staffing schedules and more, according to the release.

“OpenTech has always been dedicated to providing open solutions, allowing integrations with devices and software from different vendors,” said Jon Loftin, vice president of OpenTech and IoE product owner. “While the Insomniac CIA keypads have been designed to address maintenance, installation and functionality issues with older self-storage access-control systems, we realize that some operators need the benefits of cloud-based access control without the additional cost of replacing all of their keypads.”

PTI offers access-control and other security technology for the self-storage industry. From concept to completion, it helps facility operators design and implement a package tailored to their specific sites. The company has installed more than 36,000 systems in 30 countries.

OpenTech provides several models of Insomniac self-serve kiosks as well as a range of self-storage rental solutions including the Insomniac Live! Call Center, Insomniac Online Web and mobile applications, LiveAgent! software products, and the Insomniac ILock Security System, all available through the company's self-storage cloud.

ezStorage Corp., which operates 48 self-storage facilities in Maryland, Virginia and Washington, D.C., has introduced a contact-free rental process at its facilities in response to the coronavirus (COVID-19) pandemic. Customers now have the ability to rent a storage unit without any person-to-person contact.

“Right now, we understand that our local communities, country and the world are going through a scary and unprecedented time. At ezStorage, we strive to do our part to help flatten the curve and keep our communities, renters and employees safe,” according to a press release. “With the contactless rental option, customers can rent a storage unit from the comfort of their own home. This not only limits person-to-person contact, it also helps to align with the stay-at-home procedure. If a customer prefers to rent a storage in person, that option is still available.”

Some ezStorage locations have limited office hours. Facility hours are regularly updated on the individual facility websites.

ezStorage is one of several operators to introduce contact-free rentals in recent weeks. The transition allow tenants to select and pay for a unit, complete their rental paperwork, and manage their accounts online.

Founded in 1988 and headquartered in Columbia, Md., ezStorage facilities contain more than 44,000 units.

Source: Herald Mail Media, ezStorage Rolls Out Contactless Renting

As the coronavirus spreads like wildfire, self-storage operators are taking a hard look at how they handle tenant payments. Healthcare experts have warned that COVID-19 can live on surfaces, such as doorknobs and handrails, for anywhere from three hours to three days, depending on the circumstances.

Everyone knows cash collects and spreads germs, but credit and debit cards may not be much safer under current circumstances. In fact, those cards carry more types of bacteria than traditional paper currency, according to a study by creditcards.com.

The key to minimizing exposure for self-storage managers and customers and limiting the spread of infection is to take extra caution with payment methods. Fortunately, there are three that are not only secure and convenient for staff and tenants, they’ll help keep everyone safer and healthier during this time of crisis.

NCF Payments

Near-field communication (NFC), contactless payment technology has been readily available and growing in self-storage since the EMV (Europay, MasterCard and Visa) liability shift to chip cards back in 2015. It allows customers to pay by simply “tapping” their card within close proximity of a compatible payment terminal. This also opens the door to paying with NFC-enabled devices, such as cellphones and tablets, using digital wallets like Google Pay and Apple Pay.

With the limited physical interaction involved, the application of NCF technology during this pandemic is obvious. In addition, NFC payments are faster and more secure than PIN and chip cards.

Virtual Terminals

As a self-storage operator, you might also opt to use a virtual terminal in lieu of any onsite card reader. This is essentially a Web-based application that allows you to enter a tenant’s credit card details manually over the Internet. An excellent resource for any business with limited counterspace, this technology is great for accepting phone or in-person payments. Transactions are completed through a gateway that uses tokenization or data encryption to secure the tenant’s payment information. If you’ve closed the storefront to your self-storage business but still want to accept payments securely while maintaining payment card industry (PCI) compliance, virtual terminals are a great option.

Automatic Payments

Automated, recurring payments may not be revolutionary, but the idea behind them couldn’t be more important—securing a steady income flow while limiting person-to-person interaction. This is beneficial to your self-storage operation and tenants in a time when social distancing and staying in place are encouraged. With automatic payments, customers don’t have to worry about piling bills, accruing late fees or exposing themselves to infection.

A well-crafted e-mail generated by your management software may be enough of a nudge for tenants to rethink their position on autopayments, if they’ve previously declined to sign up for them. You might even consider offering a small incentive, such as a discount, to those who sign up. With many storage operators choosing to waive late fees during this crisis, the profit loss from a discount is lessened when pitted against the cost of a waived late fee. The flexibility of these payments allows customers to opt in online, over the phone or in person.

Ongoing Value for Operators

Whichever payment methods you decide to accept during this difficult time, it’s more important than ever to embrace the technology available to benefit your business and customers. While the safety gains are obvious, modernizing payment acceptance will continue to be a valuable asset into the future, since it helps lower operational costs and reflects a high standard of business management.

Kevin Kerr is the marketing manager for Storage Commander Software, a Temecula, Calif.-based supplier of cloud-based management software and pay merchant services for self-storage operations. To reach him, e-mail [email protected]; visit www.storagecommander.com.

At some point in your life, you’ve been on the phone with someone who used some sort of sales or customer-service script. It’s likely the call was “recorded for quality assurance.” The organization probably had another employee who listened to the call to ensure the representative checked all the right boxes in the script.

There’s nothing wrong with any of this. In fact, it’s good for a company to confirm its customers are receiving good service. However, following a script line-by-line can feel impersonal and robotic to callers, which can deter sales.

During my tenure in the self-storage industry, I’ve devised and implemented several sales scripts for facility managers, and I’ve come to realize a few things that might help you create your own. So, let’s jump into the elements of a solid sales script, so you can craft one that works for you.

Practice and Customize

First, you need to understand that everyone has a different communication style. While there are certain parts of a self-storage sales presentation that are mandatory, much of the conversation is customizable and depends on the flow of the discussion.

To ensure the best sales presentation, take the script components you feel are most important and practice! You might even do some role-playing or review recorded calls to ensure you’re hitting all the right notes. Fair warning: Perfecting this technique takes time and patience.

Greet the Customer

The first element of a good self-storage phone-sales script is a natural greeting. Aim to answer the phone in three rings or less, with something like, “Thank you for calling XYZ Storage. This is Sean. How can I help you?” It’s amazing how many managers have trouble delivering this line in a friendly manner. It could be because they’re busy or just having a bad day. Regardless, this is the first impression with the prospect, so make it count. It may sound silly, but try standing up and smiling when speaking. It can help you sound welcoming and energetic.

After the greeting, ask the caller for his first name so you can use it throughout the call. If possible, request a phone number and e-mail, too. You can ask for this info any time during the conversation. Include space for the answers on your script sheet so you can easily refer to it later. Also, include the date and your name.

Ask the Right Questions

Many callers simply want to know unit availability and pricing, but it’s your job to engage them further. Start by finding out if the customer has ever used storage before. This’ll help you understand his level of knowledge about the product and avoid “taking down” to him about things he already knows.

Next on your script checklist, determine what the caller is storing; then you can demonstrate you’re the expert by recommending the best unit size. One of my biggest pet peeves is when managers ask, “Do you know what size unit you’d like?” Instead, try “Can you give me an idea of what you’re storing so I might determine the right size for you?” A good manager should be able to calculate a size based on potential unit contents. It’s also vital here to recommend a climate-controlled or drive-up unit (if you offer both). Remember, your customers are often experiencing a stressful situation. Be the problem-solver, and they’ll thank you for it.

Once you’ve recommended a unit size and type, the customer will likely ask the price, so give it to him. When quoting the amount, use the word “only,” for example: “The 10-by-10 unit is currently only $xx per month.” Feel free to offer a special if there’s a serious price objection or some other compelling reason to do so.

The next item on your list is to find out when the caller will need storage. If he’s looking to store soon, offer to reserve a unit. If you secure the reservation, get at least a name, phone number, e-mail and mailing address. Bonus points for taking it one step further and obtaining a credit card number! Super bonus points for getting a deposit to go toward the rental!

Always impart a sense of urgency to your caller. Never say things like, “Oh, we have plenty of units in that size, so there’s no rush.” Instead, say, “With our great pricing and demand being high in this area, that size unit will rent quickly. Would you like to reserve it today?”

Next, find out how long the customer thinks he’ll need storage. This question is helpful in helping you determine what type of special (if any) to offer, plus it keeps the conversation going. The more information you can gather the better. Remember, you’re trying to have a meaningful discussion, not act like a robot spouting automated messages. The more rapport you can establish on this initial call, the more likely the caller will become a tenant.

Another important question is “How did you hear about us?” Just make sure you have system to track this valuable information. If you aren’t using software that allows you to track leads, follow-ups and other key statistics, start now. Implementing a great phone-sale script means nothing if you don’t leverage the data you collect.

Finally, invite your caller for a facility visit. Appointments are a great way to get potential tenants to the property and super helpful when placing follow-up calls. Again, obtain the person’s name, address, phone number and e-mail. Offer to send a confirmation e-mail with a reservation and general property information.

Share Facility Amenities

How well do you know your facility? As a successful self-storage manager, you should be able to name at least three amenities that make your site special. I’ve always kept a list of things my facility offers right next to my phone. That way they’re always in front of me instead of me and I don’t have to rely solely on my sometimes-feeble memory. If you aren’t sure what qualifies as an amenity, here are some examples:

• Resident manager
• After-hours access
• Flatbed carts
• Delivery acceptance
• Cargo elevators
• Video surveillance
• Online billpay
• Electronic gates
• Moving and packing supplies
• Truck rentals
• Professional pest control

Know what amenities your competitors offer, too. This’ll make it easier to overcome objections if they arise.

Wrap It Up

Before you end the call, thank the customer for his interest and offer to provide directions to your property. Remember to take copious notes during the conversation with your potential new tenant. These should be entered into your management software for potential follow-up calls based on when the caller needs a unit.

If you’re able to master the skill of taking all this information and working it into your phone-sales conversation, you’ll be well on your way to making the most of every prospect call that comes your way.

Sean Landry is owner and president of Expert Storage Management LLC, which offers third-party management services for self-storage, including staff hiring and training, revenue management, pricing, unit-mix optimization, marketing strategies, and more. He founded the company in 2016 after a successful career as a facility manager and consultant. For more information, call 504.251.1260; e-mail [email protected]; visit www.expertstoragemanagement.com.

To borrow a catchphrase from Major League Baseball sportscaster Harry Carey, “Holy cow!” What a difference just a few weeks makes. After more than a decade of historically low interest rates, stability, and liquidity in the commercial real estate markets, things have changed quickly. If you’re currently engaging in self-storage transactions, it’s important to have patience and understand the market. I’ve summarized it for you below.

General Market Conditions

The lending landscape has changed dramatically in just a few short weeks. Generally speaking, this can be characterized as a shift from aggressive loan origination to conservation, asset management and preservation of capital.

The funnel of available capital is much narrower than it has been in quite some time. There are still lenders originating loans, but there are fewer of them and the criteria for qualified deals has intensified. Lenders that remain active are overwhelmed with requests and, in general, have the luxury to cherry-pick deals right now. Here are a few other observations:

• Despite the fact that the federal funds rate is virtually zero and the underlying indices are historically low, credit spreads have increased, and rates are moving up.
• Some lenders are pausing new loan originations, while others have completely stopped quoting until they get a better indication of market direction.
• When the pandemic will end and how much it will hinder our economy in the short and long term remains unclear. Until it comes in to focus, the lending markets will continue to be impacted.
• Transacting in the current market is difficult for obvious reasons. It’s hard to get people on site to do the work needed to consummate a transaction. If you’re going to buy, sell or finance real estate, it’s critical to set realistic expectations around timing and contingencies needed around all sides of the transaction.

Balance-Sheet Lenders: Banks, Credit Unions and Life Companies

Banks generally remain well-capitalized and healthy, largely as a result of lessons learned during the last recession. That said, things are evolving quickly, and they’re drinking from a fire hose dealing with requests for forbearances and loan modifications, struggling companies, processing Small Business Administration relief loans … you name it.

Balance-sheet lenders that are still lending are largely implementing rate floors or simply quoting an “all in” rate on new loan originations. Many of the life companies and banks I’ve surveyed have implemented rate floors in the 3.75 percent range and up. Anecdotally, in early April, one very consistent lender had a rate floor on new deals of 3.65 percent; a week later, it shifted up to 4 percent.

Lenders are pulling back to a more conservative mindset and focused on straightforward deals with solid fundamentals and sponsorship. This means lower loan-to-value, higher debt-service coverage ratio and debt-yield metrics, and solid market and sponsor profiles.

Many life companies and banks have temporarily exited the new-originations market to wait for more pricing clarity and, in the meantime, may be deploying capital into a higher relative value product or conserving it altogether. This trend will continue if the pandemic is protracted longer than anticipated.

Commercial Mortgage-Backed Securities

The commercial mortgage-backed securities (CMBS) market has been disrupted and is generally in a stall. Most CMBS lenders have stopped quoting deals until the market comes back into focus. Those lenders that continue to quote deals are doing so with many caveats, as the market remains fluid.

Pricing CMBS loans depends heavily on how deals are “pricing and trading,” and that volume is essentially non-existent. It would be very difficult to accurately price a loan right now. CMBS spreads have widened significantly to offset the drop in the underlying indices.

If you’re an existing CMBS borrower (or really any borrower) facing difficulty meeting your loan obligations due to the current circumstances, you’ll find useful information from the Commercial Real Estate Finance Council regarding how to navigate with your loan servicer.

Bridge Lenders, Debt Funds and Private Capital

The bridge market is facing significant disruption. Debt funds that rely on repo lines or credit facilities from institutional partners are likely to pause originations while awaiting further guidance in light of general market conditions, the potential for margin calls and other factors. At the beginning of the year, there were several hundred bridge lenders in the market using a variety of strategies to fund deals. Today, there are a fraction of that amount actively pursuing and funding deals.

The current environment will likely shake out peripheral lenders who don’t have solid capital platforms and equity partners committed to a long-term vision. Private capital sources with access to discretionary capital may see this as an opportunity to fill the short-term gap and increase their production until things stabilize. This will be risk-adjusted capital with a pricing premium.

Other General Observations

Some property types will be affected more heavily than others. Self-storage remains attractive as does multi-family, manufactured housing and industrial. Hospitality and retail face significant obstacles in the near term and maybe indefinitely. Despite the short-term disruptions expected from the “no eviction” mandates, multi-family and manufactured-housing properties will continue to benefit from the additional liquidity provided by lenders Fannie Mae and Freddie Mac.

Equity will be affected by alternative investment opportunities that have resulted from a general market correction. Deals that rely on “syndicated-type” structures seem most vulnerable as individual investors consider alternative options.

Bridge capital that’s been available to take out construction loans on recently completed self-storage properties may become scarce. This could place pressure on maturing construction loans on projects that have been slow to lease-up.

The CARES Act

The programs and initiatives in the Coronavirus Aid, Relief and Economic Security (CARES) Act passed by the U.S. Congress are intended to help small-business owners with whatever needs they have right now. This legislation is extremely comprehensive, including the Paycheck Protection Program, emergency economic-injury grants, mortgage assistance via the small-business debt-relief program and other resources. This comprehensive guide from the U.S. Senate Committee on Small Business & Entrepreneurship can help you better understand what’s available and how to get started.

Parting Advice

If you need to transact, get into the market as soon as possible, as the process is likely to be protracted because lenders are overwhelmed by loan requests. Borrowers need to be prepared for slower response times given general business interruption and distracted employees who are dealing with various iterations of the quarantine. Working with a mortgage broker can help ensure your transaction is being prioritized by lenders that remain active and any perceived market risks are being mitigated upfront.

Shawn Hill is a principal at Chicago-based The BSC Group LLC, where he advises clients nationwide on debt and equity financing as well as loan-workout services for all commercial property types, with an emphasis on the self-storage asset class. To reach him, call 312.207.8237; e-mail [email protected]; visit www.thebscgroup.com.