SSSE’s core values are Fun, Integrity, Drive, and Others-First. As part of our commitment to Others-First, we strive to educate our investors, partners, and the general public about self storage. The Roman philosopher Seneca once said, “Luck is what happens when preparation meets opportunity”. This Frequently Asked Questions page is to serve as preparation for anyone interested in learning more about self storage and SSSE. The opportunities come when you sign up for SSSE’s investors list or buyers list by clicking the links in our menu bar. We hope to be lucky enough to work together.
If there are any questions that you have that are not answered below, please contact info@ssse.com
How does SSSE act on its commitment to “social stewardship”?
Our company on-liner is “tax-advantaged self storage with an emphasis on downside mitigation and social stewardship”.
By nature self storage mitigates downside and is tax-advantaged. In the Great Recession of 2007-2009, self storage dropped -3.8% in comparison to the S&P 500’s -22%. This was the smallest drop of any real estate asset class. From 2011-2018, self storage had the lowest default rate of any real estate asset class. When those rare few properties did default, the banks only lost an average 1.52% per default. Banks recognize the inherent downside mitigation of self storage and that’s why its one of their favorite assets to lend on.
We further emphasize downside mitigation with our rigorous underwriting and analysis. Each of our syndications and investments is required to have multiple exit strategies. With our robust pipeline of leads and opportunities, we are never in a position where we feel the need to take on a new acquisition or development because of pressure to deploy capital. We pick the best opportunities to move forward with when it makes sense to do so.
As for tax advantages, the government provides incentives for anything that creates food, jobs, or shelter. While self storage is not housing, it is real estate and has all of the great tax benefits like bonus depreciation. We consider tax benefits as part of our analysis process, and choose deals that will result in the greatest tax benefits.
Our company one-liner emphasizes social stewardship. We believe that self storage can be more than metal boxes. We are very fortunate with the opportunities that self storage affords us. One of those is the opportunity to give back to the communities our storage facilities serve and to make environmentally conscious decisions when designing our developments. Energy efficient materials, solar panels, electric vehicle chargers, green roofs, native species landscaping, and more are all considerations we take into account when planning and designing our new self storage facilities. Our primary focus in regards to social stewardship is participating and donating to local charitable causes for each of the communities our storage facilities serve. Self storage is an incredibly localized business. On average, 70% of renters come from a 3 mile radius of a self storage facility. This is an opportunity for us to really participate in our communities. Our charitable donations and participation is focused around food, shelter, and jobs. Some of our most common avenues for giving back to the areas we serve are local food banks, domestic violence shelters, and after school programs. Our renters trust us to store and protect their beloved belongings, and we want to go beyond that to protect and improve the communities that store our properties.