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Ep 139: Why Self-Storage is the Ultimate Disruptor Asset Class with Ryan Gibson


The status of self-storage as a recession-resistant asset class has really been put to the test during the coronavirus pandemic, but today’s guest still believes that it is one of the best-performing investments you can make. Ryan Gibson is the CIO and Cofounder of Spartan Investment Group, which owns and operates self-storage facilities throughout the United States. Ryan is responsible for investor relations and raising capital from investors for projects and, to date, Spartan has raised over $25 million in private equity and has over 4,000 units in self-storage under management. His real estate experience also includes residential development and investor relations, and he is knowledgeable in the tax foreclosure process, inherited homes and estates, and real estate syndication too. Tuning in, you’ll hear what attracted Ryan to self-storage and RV parks, why both remain resilient, even in a post-COVID world, and why storage is probably the ultimate disruptor asset class. All this and so much more in today’s episode, so make sure not to miss out!



Key Points From This Episode:

  • Learn a bit more about Ryan and the growth of Spartan Investment Group (SGI).

  • Transitioning into self-storage and what attracted Ryan to this resilient asset class.

  • How RV parks performed during COVID and why they are still a good investment.

  • Some of the other benefits of self-storage, including the tax benefits and scalability.

  • Ryan explains why self-storage is the least foreclosed on; it’s a disruptor asset class.

  • Why selling at a compressed cap rate at scale is just one possible exit strategy; SGI’s top value adds and revenue drivers.

  • How SGI expects, markets for, and even looks forward to a higher tenant turnover rate.

  • While supply and demand is the biggest threat to the industry, Ryan explains why it’s a micro-level concern, not a macro-level one.

  • Hear more about SGI’s deal flow in 2021 and why they have expanded into construction too.

  • The key ingredients of storage: rents per square foot, construction costs, site, and demand.

  • Ryan shares how he stays on top of so much data and trends in so many different markets.

  • Compiling a wealth of data in a micro-market like storage; active and proactive data research.

  • How COVID has shifted trends in population and other non-traditional data analysis; why SGI will continue investing in tertiary markets.

  • SGI’s recently converted Macy’s deal; the growing trend to convert big box retail into storage.

  • The importance of constantly evaluating the markets and doing environmental scans.

  • Find out about their 2020-2022 strategic plan, which you can download on their website.



Tweetables:


“Our journey over to storage was because it was the least foreclosed upon asset class during the last two recessions and it performed the best.” — Ryan Gibson [0:05:52]

“It’s a disrupter asset class. It relies on life events, so disruption is a good thing for storage.” — Ryan Gibson [0:10:42]

“The biggest threat to the industry is supply and demand, but it’s not a macro level concern. It’s a micro level concern. Storage is a three-mile business.” — Ryan Gibson [0:19:36]

“Occupancy is a big deal, when you look at occupancy in a market. Rental rates are a big deal, but there’s a lot that goes into the demands calculations to decide if [it’s] a ‘go’ or ‘no go’ decision.” — Ryan Gibson [0:27:45]

“No one cares about the view from your storage facility or that it has got marble tile or stainless-steel appliances. It’s price and location.” — Ryan Gibson [0:32:05]



Links Mentioned in Today’s Episode:

Ryan Gibson on LinkedIn

Ryan Gibson on Instagram

Ryan Gibson Email

Spartan Investment Group

Spartan Investment Group 2020-2022 Strategic Plan

Esri

Radius

Yardi


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