One of the largest and most successful self-storage companies in the United Kingdom sought experienced valuation advisory that accurately accounted for its brand prominence and the impacts of sustainability strategy.

With extensive experience in this operational asset class, JLL’s valuation experts knew first-hand the right methodology to use: With a Discounted Cash Flow approach, lease-up periods and yield management could be explicitly forecasted in cash flows. This meant analysing profit and loss data for each of the self-storage company’s assets. To calculate competitive advantage, we also conducted a competitor study within our supply database.

In self-storage, any operational cost savings are directly accretive to value. JLL led a review of utility costs for all 100+ assets to identify savings and quantify the impact of solar panel installation on property values. Further, by comparing our operational benchmark database to actual performance, we applied informed growth forecasts to cash flows.

In addition to examining data, our EMEA Self Storage Value & Risk Advisory team needed to conduct onsite visits at each asset — a logistical challenge, considering the storage company’s footprint stretches from London to Exeter to Edinburgh.

Four weeks and 100+ site visits later, JLL proudly handed over a thorough risk and valuation assessment demonstrating the impact of ESG initiatives and reflecting the quality of the assets relative to the rest of the sector.