The AAA Storage Podcast

What Business Owners Should Look for in Real Estate Investing

AAA Storage — Tue, 03 Mar 2026 08:21:51 -0600

In this episode, Paul Bennett explores how entrepreneurs and business owners can build long-term wealth through real estate investing. Paul breaks down the differences between active and passive investment strategies, discusses tax considerations, and shares key tips for managing risk and evaluating deals. If you want to understand how real estate can balance your portfolio and set you up for future success, tune in for expert guidance and practical advice.

We believe good investing starts with a conversation, so if today's episode got you thinking about your investment strategy, reach out to us through our Contact Form and let's start building together: https://www.aaastorageinvestments.com/contact

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• LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
• Instagram: https://www.instagram.com/aaastorageinvestments/
• X: https://x.com/investments_aaa
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Download our free guides to take your investing to the next level:
10 Due Diligence Questions to Vet Any Real Estate Sponsor: https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsor
First-Time Real Estate Syndication Investor Checklist: https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklist

What Medical Professionals Should Look for in Real Estate Investing

AAA Storage — Tue, 17 Feb 2026 06:57:47 -0600

In this episode, Paul Bennett explores the opportunities and challenges of passive real estate investing for medical professionals. They discuss why traditional wealth-building strategies often fall short for high-income earners in the medical field, and unpack the advantages of real estate for creating financial flexibility and security.

Paul shares practical advice on assessing risk, evaluating sponsors, understanding tax benefits, and building a diversified portfolio over time. Whether you're a seasoned investor or just beginning to consider real estate, this episode offers actionable insights to help medical professionals make informed investment decisions.

Fund of Funds Overview

AAA Storage — Tue, 27 Jan 2026 05:35:37 -0600

Join us as Paul Bennett, Managing Director at AAA Storage, breaks down Fund of Funds investing. Paul explains how this approach is opening doors for everyday professionals—not just financial experts—to aggregate capital and access private investment opportunities. Hear real-world examples, learn about the benefits for both investors and fund managers, and discover how trust and relationships play a crucial role in the process. If you're looking for new ways to grow your wealth or support your network, this episode delivers the practical insights you need.

Chapters
(00:00) Understanding Fund of Funds Structures
(02:30) Expanding Investment Access and Efficiency
(04:30) Benefits to Investors and Fund Managers
(07:20) Role of Trust and Due Diligence
(09:10) Who Can Be a Fund of Funds Manager
(12:10) How the Program Works in Practice
(17:00) Compensation, Support, and Program Details

Sign up for our Webinar on March 5th to learn more: https://luma.com/bja6hsdl
Learn more in our episode with Tribevest: https://www.aaastorageinvestments.com/resources/behind-the-fof-curtain-fees-alignment-and-when-its-worth-it

Download our free guides to take your investing to the next level:
10 Due Diligence Questions to Vet Any Real Estate Sponsor:
https://www.aaastorageinvestments.com/info/10-due-diligence-questions-to-vet-any-real-estate-sponsor
First-Time Real Estate Syndication Investor Checklist:
https://www.aaastorageinvestments.com/info/first-time-real-estate-syndication-investor-checklist

Flagship Healthcare Real Estate with Brannen Edge

AAA Storage — Tue, 13 Jan 2026 03:00:57 -0600

Join us for a special episode as Paul Bennett sits down with Brannen Edge, President and CEO of Flagship Healthcare, to explore the world of medical real estate and private REITs. Brannen shares his journey from banking to building a billion-dollar portfolio and reveals how thoughtful structure and vertical integration have fueled Flagship’s success. Discover why outpatient healthcare real estate stands apart, how investment strategies are evolving, and what lessons seasoned experts have learned from market cycles. Whether you’re curious about resilient property sectors or want an insider’s take on where the best opportunities lie, this episode delivers practical insight for any investor.

Chapters
(00:00) Brannen Edge’s Professional Journey
(04:35) Transition from Fund Structure to Private REIT
(10:30) Private REITs Versus Public REITs
(13:00) Return Objectives and Asset Focus
(16:10) Investment Strategies in Outpatient Healthcare
(21:08) Vertical Integration and Service Offerings
(26:40) Market Conditions, Risks, and Lessons Learned
(35:10) Bullish Outpatient Trends and Future Outlook
(38:20) Key Misconceptions About Medical Real Estate

Learn more about about Flagship Healthcare Properties: https://flagshiphp.com/

2026 Market Outlook

AAA Storage — Mon, 22 Dec 2025 06:00:00 -0600

Join Paul Bennett as he breaks down the 2026 market outlook for self-storage and commercial real estate. In this episode, Paul shares data-driven insights into interest rates, economic trends, shifting regional demand, and why Texas continues to stand out as a growth leader. Hear a candid discussion about household formation, lifestyle changes, and investment strategy—including where smart capital is going next. If you want a grounded, expert perspective on how to navigate a turbulent market, this episode delivers actionable analysis you can trust.

Get our full 2026 Market Outlook here: https://www.aaastorageinvestments.com/info/2026-self-storage-market-outlook

Chapters
(00:01) Setting the 2026 Economic Context
(03:09) Interest Rate Trends and Impacts
(06:06) Modest Growth and Inflation Expectations
(10:15) Real Estate Market Bottoming Dynamics
(14:57) Regional Differences and Market Absorption
(17:52) Occupancy, Rates, and Cap Rate Movements
(24:14) Demographics and Lifestyle Shifts Driving Demand
(31:37) Investment Opportunities and Small Bay Industrial Outlook

Follow and Connect with Us
LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
Instagram: https://www.instagram.com/aaastorageinvestments/
X: https://x.com/investments_aaa
Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/

Single-Story Drive-Up Self-Storage

AAA Storage — Tue, 09 Dec 2025 06:42:24 -0600

Join us this week as we explore the practical reasons behind AAA Storage's focus on single-story, drive-up self storage. This episode delves into the key differences between single-story and multi-story facilities, covering everything from construction costs and operational simplicity to consumer convenience and investment returns. Paul shares first-hand market analysis and memorable anecdotes that reveal why this approach consistently delivers stronger results for investors. If you want to understand the strategic decisions that drive lasting value in self storage, this episode is a must-listen.

Chapters
(00:15) Focus on Single Story Drive-Up Storage
(01:25) Comparing Multi-Story and Drive-Up Facilities
(04:07) Design and Construction Differences
(08:08) Cost, Phasing, and Capital Requirements
(09:53) Operational and Consumer Advantages
(15:31) Investment Returns and Yield on Cost
(22:50) Market Selection and Land Banking Strategy
(26:01) Resources, Webinars, and Community Updates

Behind the FoF Curtain: Fees, Alignment, and When It’s Worth It

AAA Storage — Tue, 25 Nov 2025 06:09:22 -0600

In this episode, we explore the evolving landscape of fund of funds investing with Branden Claisse from Tribevest, alongside Paul Bennett of AAA Storage. Discover how this innovative model creates new opportunities for both investors and fund managers, making private market access more attainable and profitable. Branden shares how Tribevest streamlines the fund management process and highlights the powerful economic and community-building benefits of this approach. Whether you’re an experienced investor or curious about capital raising, this conversation uncovers practical insights you won’t want to miss.

Found out more about Tribevest: https://www.tribevest.com/

Chapters
(00:00) Introducing Fund of Funds Investing
(02:45) How Tribevest Enables Turnkey Fund of Funds
(06:45) Economic Opportunity for Fund Managers
(09:25) Broadening Access and Investor Benefits
(15:45) Who Makes a Good Fund Manager
(19:45) Fund Economics and Investor Returns
(23:55) Roles of Sponsor, Fund Manager, and TribeVest
(29:20) Support, Marketing, and Getting Started

#PrivateEquityRealEstate #AlternativeInvestments #RealEstateInvesting #AccreditedInvestor #InvestorInsights #AAAStorageInvestments

Get to Know Your Sponsor

AAA Storage — Tue, 11 Nov 2025 06:54:10 -0600

In this special 25th episode of the AAA Storage Podcast, we sit down with Managing Director Paul Bennett for a candid and insightful Q&A session. Paul answers 25 questions—ranging from the principles that guide his investment decisions to lessons learned from decades in real estate and the values that drive the AAA team. Listeners will gain firsthand perspective on building trustworthy relationships, navigating market challenges, and the life experiences that shape a leader’s success. Tune in for an engaging conversation filled with wisdom, humor, and practical advice for investors and professionals alike.

Chapters
(00:30) Getting to Know Paul Bennett
(01:44) Decision-Making and Life Principles
(03:46) Roles, Identity, and Team Culture
(07:00) Industry Misconceptions and Lessons Learned
(12:30) Views on Debt and Building Wealth
(15:12) Innovations in Self Storage
(17:02) Building Relationships and Investor Experience
(17:59) Leadership Inspiration and Lessons from Nick Saban
(21:59) Personal Growth, Hobbies, and Health
(29:11) Advice, Time, and Life Priorities
(33:39) Vision for the Future of AAA Storage
(36:13) Rapid Fire Personal Insights

#PrivateEquityRealEstate #AlternativeInvestments #RealEstateInvesting #AccreditedInvestor #InvestorInsights #AAAStorageInvestments

Why Invest in Ground-Up Development

AAA Storage — Tue, 28 Oct 2025 04:00:58 -0500

In this episode Paul Bennett breaks down the fundamentals of real estate investing, with a special focus on the value of ground-up development. Paul shares expert analysis on how blending existing properties with new developments can deliver a balanced mix of growth, income, and risk mitigation in your portfolio. Discover surprising data points, practical strategies, and honest guidance on navigating risk and maximizing returns in self-storage and small bay industrial properties. If you want a clear-eyed look at building long-term value in real estate, this is an episode you won't want to miss.

You can sign up for the webinar here (it is now happening on Tuesday, November 18): https://luma.com/a6al5x94

Chapters
(00:00) Real Estate Portfolio Allocation
(04:30) Comparing Existing Assets and Development
(08:12) Value Creation in Ground-Up Development
(11:15) Risk and Return in Development Projects
(18:20) Understanding Different Property Types and Risk
(22:45) Achieving Balance in Real Estate Investing
(25:58) Learning Resources and Next Steps

#PrivateEquityRealEstate #AlternativeInvestments #RealEstateInvesting #AccreditedInvestor #InvestorInsights #AAAStorageInvestments

Self-Storage: The Smart Alternative Advisors Are Turning To

AAA Storage — Tue, 14 Oct 2025 07:19:22 -0500

Join us for a thoughtful conversation with Andy Jones, managing member of Jones Gregg Financial (www.jonesgregg.com), as we unpack how private real estate investments fit into a diversified portfolio.

Host Paul Bennett and Andy explore the advantages of focusing on the client’s entire balance sheet—not just their investment portfolio—and discuss the importance of character, transparency, and alignment in choosing real estate partners. You’ll discover practical insights into portfolio construction, due diligence, and the advisor-client relationship that go beyond the traditional financial playbook.

If you want to hear what sets successful real estate strategies apart, this episode delivers clear guidance and fresh perspective.

Chapters
(00:00) Real Estate as an Alternative Asset
(01:10) Jones Gregg Financial Background and Focus
(02:39) Defining Private Real Estate Investment
(04:16) Motivations for Including Private Real Estate
(06:22) Balance Sheet Approach to Client Wealth
(12:39) Evaluating Investments and Importance of Character
(23:33) Advice for Advisors Considering Alternatives
(27:06) How to Contact Jones Gregg Financial

#PrivateEquityRealEstate #AlternativeInvestments #RealEstateInvesting #AccreditedInvestor #InvestorInsights #AAAStorageInvestments

After You Invest: What You Can Expect From Us

AAA Storage — Tue, 23 Sep 2025 06:41:42 -0500

Join host and AAA's own Managing Director, Paul Bennett, for an in-depth look at what happens after you decide to invest in a real estate fund with AAA Storage.

This episode uncovers the full investment journey—from the decision-making process and personalized investor support to the subscription steps and ongoing communications you can expect as a partner.

Paul shares candid details about building lasting relationships with investors, the systems that ensure transparency, and how AAA Storage stands out through trusted, hands-on service.

If you're considering a real estate investment or want to better understand investor relations done right, this episode is a must-listen.

Follow and Connect with Us

LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
Instagram: https://www.instagram.com/aaastorageinvestments/
X: https://x.com/investments_aaa
Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/

Chapters
(00:00) Building Relationships During the Decision Process
(03:56) Providing Information and Transparency for Investors
(06:29) Subscription Process and Fund Closings
(09:21) Ongoing Communication and Investor Support
(11:11) Quarterly Updates and Investor Reporting
(14:04) K1s and Tax Documentation
(15:25) Annual and Semi-Annual Investor Meetings

What It Really Takes to Build a Storage Facility

AAA Storage — Tue, 09 Sep 2025 04:00:00 -0500

In this episode, Paul Bennett sits down with Shawn Beichler, Director of Land Development and Construction at AAA Storage, to reveal what truly goes into building a top-performing self-storage facility. Together, they break down the development process from pre-construction due diligence through value engineering, unique construction methods, and final delivery. Listeners gain practical insight into the challenges and cost-saving strategies that make AAA Storage competitive, including in-house innovations and tailored site management. Whether you're an investor, developer, or simply curious about how storage facilities come to life, this conversation delivers a behind-the-scenes look at the expertise fueling AAA Storage’s success.

Follow and Connect with Us

LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
Instagram: https://www.instagram.com/aaastorageinvestments/
X: https://x.com/investments_aaa
Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/

Chapters
(00:01) Introducing the Development Expert
(03:00) Pre-Development and Due Diligence
(06:00) Permitting Challenges and Site Constraints
(14:55) Construction Phases and Value Engineering
(22:10) In-House Efficiency and Cost Control
(26:50) Project Completion and Tenant Fit-Out
(30:55) Market Strategy and City Selection

What Family Offices Want in an Investment — And How We Deliver

AAA Storage — Tue, 26 Aug 2025 04:00:00 -0500

Join us for a candid conversation with Van Isley of Isley Family Ventures as he shares his journey from humble beginnings to launching a successful family office and investing across multiple asset classes. Hosted by Paul Bennett, this episode delivers firsthand insights into how family offices approach diversification, due diligence, and active versus passive investment strategies.

Van reveals the principles behind his investment decisions, his highly positive experience partnering with AAA Storage, and practical advice for families building long-term wealth. Whether you're managing generational assets or looking to refine your approach, you'll find clear, experience-backed guidance in this discussion.

Connect with Us

LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
Instagram: https://www.instagram.com/aaastorageinvestments/
X: https://x.com/investments_aaa
Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/

Chapter Outline
(00:00) Van Isley’s Career Journey
(08:52) Building an Investment Philosophy
(14:07) Active Versus Passive Investments
(17:35) Due Diligence and Decision-Making
(21:23) Investing in Self Storage and AAA Storage
(26:38) Experience as an AAA Storage Investor
(29:08) Advice for New Family Offices

How We Underwrite a Storage Deal — Start to Finish

AAA Storage — Tue, 12 Aug 2025 04:00:00 -0500

Join us for an in-depth look at the art and science of deal underwriting with Logan Broyles, Senior Market Analyst at AAA Storage.

In this episode, Logan pulls back the curtain on the nuanced process of evaluating self storage investments, from defining markets to weighing critical data points like supply, demand, and growth dynamics.

Discover how the AAA team balances rigorous analysis with practical judgment to deliver sound investment decisions in a rapidly changing real estate landscape. If you want to understand what truly drives strong storage investments, this episode is packed with valuable insight and expertise.

Follow and Connect with Us

LinkedIn: https://www.linkedin.com/company/aaa-storage-investments/
Instagram: https://www.instagram.com/aaastorageinvestments/
X: https://x.com/investments_aaa
Facebook: https://www.facebook.com/people/AAA-Storage-Investments-LLC/61575027573292/

Chapter Outline
(00:00) Introduction and Guest Background
(02:30) Defining the Target Market
(06:40) Dual-Stage Underwriting Approach
(10:00) Analyzing Supply and Demand Drivers
(16:00) Beyond Conventional Metrics
(20:10) Pipeline Scrutiny and Data Verification
(23:30) Integrating Market Analysis with Financial Modeling
(28:00) Investment Committee Review and Investor Assurance
(33:10) Weighted Metrics and Nuanced Judgments
(38:10) The Blend of Science and Art in Underwriting

Breaking Down the Big Beautiful Bill's Impact on CRE Investing

AAA Storage — Sun, 20 Jul 2025 05:00:00 -0500

Join us for this we sit down with Paul Bennett to break down the landmark HR1 “Big Beautiful Bill” and its impact on commercial real estate investing. Together, they clarify what the new legislation means for investors, including enhancements to bonus depreciation, changes to qualified business income deductions, and the elimination of green energy tax credits. Paul shares practical examples and actionable insights, helping both seasoned and new investors understand the most significant tax and investment opportunities. Tune in to get the facts you need to navigate the latest changes and make more informed real estate decisions.

Chapter Outline
(00:00) Overview of HR1’s Impact on Real Estate
The episode introduces the recently passed HR1 legislation—nicknamed “the big beautiful bill”—and sets up a discussion on its implications for commercial real estate investors, while reminding listeners to consult CPAs for personal tax advice.

(00:49) State and Local Tax Deductions and Mortgage Interest
Paul reviews how the bill increases state and local tax deduction caps, particularly impacting those in high-tax states, and preserves the mortgage interest deduction for personal and investment properties. These changes are noted as minimally impactful for passive commercial real estate investors.

(01:55) Enhanced Opportunity Zone Incentives
The conversation covers improvements and extensions to opportunity zone benefits, including added zones and improved incentives for real estate and business investments in designated areas, allowing for potential tax deferral or elimination when holding these investments long-term.

(02:53) 1031 Exchange Provisions Remain Unchanged
The bill leaves 1031 like-kind exchange rules intact, meaning investors can continue deferring taxes when swapping similar types of real estate, a relief for those who use this strategy.

(03:35) Elimination of Green Energy Tax Credits
The hosts highlight the removal of tax credits for green energy initiatives—such as rooftop solar in self-storage facilities—reducing financial motivation for these upgrades but leaving non-tax business reasons unaffected.

(06:10) Expanded Qualified Business Income Deduction
The discussion shifts to the qualified business income (QBI) deduction, which increases from 20% to 23% and is now more accessible for passive investors due to new safe harbor provisions. Paul explains how real estate investors, even passively through funds and syndications, can benefit substantially from this often-overlooked deduction if proper documentation is maintained.

(11:26) Reinstatement of 100% Bonus Depreciation
The most significant change for real estate investors is the return of 100% bonus depreciation: investors can deduct the full depreciable basis in year one for qualifying projects placed into service after January 19, 2025. Paul explains how this creates sizable upfront tax losses for limited partners, illustrated with a detailed example.

(18:49) Final Perspective on the Bill’s Effect
The episode concludes by summing up the bill’s incremental improvements for real estate investors, particularly the value of restored depreciation benefits and the expanded QBI deduction. The hosts reiterate the importance of consulting with tax professionals and note that, while these are positive changes, the fundamental landscape for real estate investing remains stable.

Keywords: HR1, real estate investing, bonus depreciation, qualified business income, self storage, tax strategy, opportunity zones, 1031 exchange, green tax credits, commercial real estate

How Investing in a Real Estate Fund Really Works

AAA Storage — Sun, 06 Jul 2025 06:00:00 -0500

In this episode of The AAA Storage Podcast, host Paul Bennett to break down the mechanics of how AAA’s self-storage investment fund is structured. Paul offers a clear, step-by-step explanation—from initial investor contributions and property risk protection to the timing of returns and the careful alignment of interests between investors and sponsor. If you’ve ever wondered how real estate funds actually work or are considering a new investment, this episode provides straightforward insights and candid expertise you won’t want to miss.

Chapter Outline
(00:16) Fund Structure Fundamentals
Brandon and Paul open by explaining the basics of AAA’s fund structure, highlighting how the fund is organized with a master LLC, a manager LLC, and individual LLCs for each property. Paul outlines how this approach isolates risk and provides a flexible, modern structure compared to older partnership models.

(05:38) Investor Contributions and Ownership
Paul details how investor capital is committed, what determines ownership percentages, and how those contributions translate into indirect ownership of every property within the fund. He explains the importance of pro rata ownership and clarifies the process of capital allocation at both the fund and property levels.

(10:34) Capital Deployment and Construction Phases
The discussion covers how capital is allocated to projects, when and how equity is deployed, and the sequence of construction financing, leasing, and property stabilization. Paul explains the timeline for equity deployment, use of construction loans, and the phased approach to property build-out and occupancy targets.

(16:41) Distribution Timing and Exit Strategies
Paul describes when and how investors begin to receive returns, clarifying that distributions generally occur upon sale of properties. He differentiates between American and European waterfall structures, explaining AAA’s hybrid approach that ensures timely investor payouts and a “catch-up” calculation at the final exit to ensure fairness.

(21:21) Waterfall Mechanics and Investor Payouts
A detailed breakdown of the fund’s waterfall structure is provided, including priority of return of capital, preferred return calculations, sponsor “catch-up” provisions, and how profits are ultimately shared between investors and the sponsor. Paul emphasizes that investors are made whole before the sponsor receives its share.

(27:43) Alignment, Expertise, and Investor Support
As the discussion wraps up, Paul and Brandon stress the alignment of interests between sponsor and investors, the experience AAA brings as both manager and developer, and the resources available to guide both novice and sophisticated investors. Paul highlights AAA’s fundamental commitment to co-investment and long-term, hands-on involvement.

Keywords: self storage investing, real estate fund, investment structure, AAA Storage, waterfall distribution, risk management, investor returns

How the Most Recent Global Conflict May Impact Real Estate

AAA Storage — Fri, 13 Jun 2025 21:57:12 -0500

Paul Bennett takes on the breaking news of Israel’s strikes on Iranian nuclear sites and the resulting escalation—laying out what this could mean for U.S. real estate. Paul draws on 40 years of investment experience to address what matters: heightened market volatility, possible shifts in oil and inflation, and the sector-by-sector fundamentals that investors need to understand as the global crisis unfolds. Political opinions are left aside; the focus stays on how international instability can shape cap rates, transaction volume, and refinancing across key property types.

Key Highlights

How immediate news from the Middle East sent equities down and triggered a clear risk-off mood among investors.
Direct connection between Middle East conflict, oil price spikes, and the potential for higher inflation—impacting transportation, utilities, and supply chains.
Why higher or sustained interest rates could follow, delaying Fed rate cuts and complicating refinances and new deals.
Sector details: office properties are the most exposed to downside risk; retail, industrial, and small-bay industrial may see mild impacts from slower sentiment and rising costs; multifamily and self storage remain comparatively resilient, with only modest headwinds expected for now.
Uncertainty around foreign capital flows: gateway cities like New York, LA, Miami, and San Francisco could see delays or reductions, but some foreign capital may seek safety in the U.S. if uncertainty builds elsewhere.
What to watch: duration and severity of the conflict, changes in oil futures, transaction slowdowns, and which players get drawn in—all will set the tone for real estate’s path in the coming weeks.

References

Previous episode: Episode 15: Mid-Year Real Estate Sector Outlook
U.S. equity market performance cited in real-time during recording

Keywords

self storage investing, commercial real estate, geopolitical risk, Israel Iran conflict, market volatility, inflation, oil prices, cap rates, interest rates, foreign capital, office sector, multifamily, industrial real estate, sector analysis, investment context

Mid-year Update: Data Indicates a Real Estate Bottom

AAA Storage — Mon, 09 Jun 2025 06:00:00 -0500

Welcome to our data-driven mid-year 2025 real estate investing review, cutting through speculation to focus on the facts behind each major real estate sector’s position in the current cycle.

COVID-induced shockwaves are still shaping fundamentals, with some asset classes finding their footing and others facing ongoing pressure. We outline where new opportunities are appearing, which sectors have stabilized, and where caution is still warranted—without gloss or hype.

Key Highlights

Multifamily: Momentum is returning. Rent growth is positive and holding just below the long-term average (2.2% vs. 2.6%), vacancy has stabilized near 6.2%, and new construction is at a decade low. Negative leverage persists due to interest rates, but fundamentals are stronger than a year ago.
Retail: Stability defines the sector. Grocery-anchored shopping centers remain in demand with low vacancy, supported by a 400% year-over-year jump in institutional investment. Lease volume is limited more by supply than demand.
Industrial: General industrial is steadying after pandemic-driven oversupply, with vacancies in the 7–8% range. Small bay industrial remains extremely tight nationwide (3% vacancy), pushing demand for service, light manufacturing, and new consumer uses.
Office: Market faces continued challenges. Vacancy is forecasted to peak at 19% in 2025 and could remain elevated into 2026 or beyond. Class A space in major markets is relatively stable, but Class B and C properties face sharp headwinds as large employers shed space and transactions remain slow.
Hospitality: Occupancy remains slightly below pre-pandemic levels, but rate and revenue per room now exceed 2019 figures, restoring profitability even with supply-side pressures.
Self Storage: The sector is stabilizing after a 28-month period of declining street rates. Rates have now leveled, new development is slowing (pipeline down to 2.8% of existing stock, projected to fall to 2% by 2027), and long-term fundamentals remain solid for developers and investors.

For more head to www.aaastorageinvestments.com/.

Wisdom from an Experienced Real Estate Investor

AAA Storage — Mon, 02 Jun 2025 06:00:00 -0500

In this episode of the AAA Storage Podcast, Paul Bennett focuses on the essential lessons that come from nearly four decades of investing in real estate. Paul shares practical, candid insights about what shapes long-term success—discipline, planning, selecting the right sponsor, and the realities of market cycles. The discussion speaks directly to high-net-worth investors looking for reliable returns in self storage, offering grounded perspective instead of trends or empty promises.

Key Highlights
• The importance of disciplined capital allocation and the pitfalls of trying to time the market
• How liquidity and having cash reserves enable investors to weather downturns and hold assets through challenging periods
• The consequences of chasing tax advantages and overleveraging, illustrated through personal experience during the aftermath of the Tax Reform Act of 1986
• Why sponsor alignment—with meaningful capital at risk and a problem-solving approach—protects investors when markets shift
• Herd mentality in real estate: how following the crowd leads to trouble and why well-placed contrarian moves create opportunity
• The responsibility of passive investors to perform due diligence on market cycles, local demand, and the sponsor’s commitment and expertise

Resources
• Paul Shannon LinkedIn Post: Lessons Learned From a Challenging Year of Passive Investing
• Paul Shannon LinkedIn Post: CBRE data for investing in 2025

Multifamily and Self-Storage Market Outlook 2025 (plus PassivePockets Conference Reaction)

AAA Storage — Sun, 18 May 2025 06:00:00 -0500

In this episode of The AAA Storage Podcast, Paul Bennett unravels the current dynamics of the multifamily and self-storage markets. Fresh from the PassivePockets conference, Paul shares insights from thought leader Brian Burke on the real estate sector's trajectory through 2025. Explore the influence of the 2008 financial crisis patterns on today's market and discover why patience and strategic opportunities may define the real estate landscape for the coming years.

Key Highlights:
• Insights from Brian Burke's presentation at the PassivePockets conference.
• Exploration of the multifamily and self-storage sectors' current conditions and future outlook.
• Discussion on the differentiation between externally driven down cycles and self-inflicted industry changes.
• Examination of the ongoing opportunities in real estate amid broader market rebalancing.
• The significance of patience, liquidity, and strategic investments in the current market.

Quotes:
• "The market is not like the stock market—it doesn’t move as quickly. It’s more about the bottoming process than the bottom itself." – Paul Bennett
• "Developers as a group are not real smart; when conditions are good, we build too much." – Paul Bennett

Introducing Growth Fund 2

AAA Storage — Fri, 02 May 2025 10:14:20 -0500

Join Paul Bennett to discuss the dynamics of Growth Fund 2, a promising investment venture emerging from the success of Growth Fund 1. This episode dives into the strategic approach of moving from single property syndications to a well-structured fund model, providing a synthesis of expertise in self-storage and office industrial flex investments. Dive into the tactical deployment of capital, market trends, and the opportunities awaiting accredited investors looking to diversify and grow their equity through strategic real estate development.

Key Highlights:
• Transition from single property syndications to an efficient fund model capitalizing on market shifts.
• In-depth discussion on Growth Fund 2’s strategy focusing on merchant development and value creation.
• Insight into the geographic spread of investments, particularly in Texas and North Carolina markets.
• The importance of diversification with a portfolio encompassing both self-storage and office industrial flex projects.
• Due diligence processes ensuring minimal risk and optimal investor alignment.

Quotes
• "We're focused on developing from a ground-up standpoint, creating that value difference." – Paul Bennett
• "The efficiency benefits both investors and sponsors." – Paul Bennett

References
• AAA Storage Investments: aaastorageinvestments.com
• PassivePockets platform and conference information: passivepockets.com

For more details, contact Paul Bennett or Andrew Frowine through the AAA Storage Investments website.

Investing in Self-Storage Amid Market Turmoil

AAA Storage — Sun, 20 Apr 2025 06:00:00 -0500

In Episode 11 of the AAA Storage Podcast, host Paul Bennett discusses the current market turmoil and its implications for self-storage investing. Amidst recent fluctuations in the markets, they dive into how these changes impact alternative investments, particularly focusing on self-storage facilities. Paul brings his extensive experience to explore the risks and opportunities that arise in such uncertain times, offering insights into why self-storage remains a resilient investment choice.

Key Highlights
• Analysis of recent market volatility and its effects on investments.
• Discussion on the impact of trade policies and tariffs on self-storage.
• Explanation of the correlation between public markets and alternative investments.
• Insights into systematic risk versus market correlation.
• Paul Bennett's thoughts on investing for alpha versus beta.
• Importance of direct investment in real estate for portfolio diversification.

Quotes
• "The markets don't like uncertainty—what they don't like is uncertainty." – Paul Bennett
• "Systematic risk is a different animal; it directly impacts real estate in a traditional sense." – Paul Bennett
• "Our investments are not correlated to the public markets—they're tangible assets acting as inflation hedges." – Paul Bennett
• "You need to have an allocation in your portfolio that's direct into, I think, real estate." – Paul Bennett

Hyper-local Market Supply and Demand

AAA Storage — Sun, 13 Apr 2025 06:00:00 -0500

In this enlightening episode of the AAA Storage podcast, Paul Bennett explores the nuanced world of self-storage investment with a focus on hyper-local market dynamics. We discuss the intricacies of supply and demand, emphasizing the importance of geographic specificity in self-storage performance. Tune in to discover essential strategies for evaluating local markets and the critical role of community engagement to enhance investor success.

Key Highlights:
• Definition and significance of hyper-local markets in self-storage investment.
• Examination of square footage per capita as a crucial metric and its variability across different markets.
• The impact of macroeconomic factors like interest rates on local self-storage demand.
• Importance of location in real estate versus its unique implications for self-storage.
• Strategic community engagement for enhancing market presence.
• The role of Google Ads and online searches in hyper-local marketing.

Quotes:
• "A hyperlocal market is simply a small, well-defined geographic area." – Paul Bennett
• "Our local managers are doing things like sponsoring the local little league... building relationships." – Paul Bennett
• "Google and online searches... have become critically important in the storage industry." – Paul Bennett

Navigating Economic Cycles in Self-Storage

AAA Storage — Sun, 06 Apr 2025 07:00:00 -0500

In this episode of the AAA Storage podcast, we explore how to navigate economic cycles within the self-storage industry, featuring insights from Paul Bennett. With expertise spanning several decades and economic downturns, Paul shares his experiences weathering financial storms from the 2008 crisis to the COVID-19 pandemic. Dive into the strategies that make self-storage a resilient asset class, even in tumultuous times, and the fundamentals that continue to offer long-term investment stability.

Key Highlights:

• Understanding the resilience of self-storage during economic shifts, including insights from the 2008 financial crisis and the COVID-19 pandemic.
• The impact of market correlation and alternative investments on self-storage performance.
• The strategic advantages of investing in non-metro self-storage facilities to avoid market saturation.
• Current market trends, including the effects of interest rates and new developments on self-storage demand.
• Strategies for self-storage investors during challenging economic times and upcoming market opportunities.

Quotes:

• "Self-storage has the lowest default rate of any type of real estate on the planet." – Paul Bennett
• "Buy when other people are selling; develop when other people are afraid." – Paul Bennett
• "The dynamics are consistent enough that what happens to a self-storage deal in a bad economy is that it simply takes longer to lease up." – Paul Bennett

2025 Market Outlook and Investing Wisdom feat. Paul Shannon

AAA Storage — Mon, 31 Mar 2025 04:40:08 -0500

In episode 8 of the AAA Storage Podcast, we explore the 2025 market outlook and dive into the world of passive real estate investing with special guest, Paul Shannon. Shannon, an accomplished real estate expert and co-host of the Passive Pockets podcast, shares his insights on the evolving landscape of passive investments and commercial real estate. Join hosts Brandon Giella and Paul Bennett as they discuss the challenges and opportunities in today's economic climate, offering listeners an in-depth understanding of real estate market trends and investment strategies.

Key Highlights

• Paul Shannon discusses his journey from active operator to passive investor, emphasizing diversification across asset classes, including self-storage and industrial assets.
• Insight into the growth of the private equity market, driven by the participation of high-net-worth individuals in alternative investments.
• Discussion on the importance of selecting trustworthy sponsors and operators when pursuing passive investments.
• Exploration of the current macroeconomic environment and its impact on real estate investments.
• Analysis of supply, demand, and the role of interest rates in shaping current investment opportunities.
• Advice on the significance of joining investment communities for networking and informed decision-making.

Quotes

• "A bad operator can mess up a good deal, but a great operator can turn a bad deal into an okay one." – Paul Shannon
• "Investing in real estate is about the collateral—you're looking for control and consistency." – Paul Shannon
• "Real estate market moves like a Ferris wheel, not like a roller coaster." – Paul Shannon

Resources

• Passive Pockets Community and Podcast: https://passivepockets.com/
• Market analysis by Jay Parsons, economist specializing in rental housing
• Capital markets updates by James Eng from Old Capital
• Economic insights from Greg Willett at RealPage
• General market trends and sentiment on MarketWatch: https://www.marketwatch.com/
• Investwise Collective Fund: Exploring fund-of-funds opportunities for diversified real estate investments.

Insights into the Capital Stack

AAA Storage — Mon, 24 Mar 2025 01:59:00 -0500

In this episode of the AAA Storage podcast, Paul Bennett discusses the intricacies of the capital stack in real estate investing. He breaks down the components of senior debt, mezzanine debt, preferred equity, and common equity—discussing their risk profiles, returns, and why certain tranches might appeal to different investors. With decades of real estate experience, Paul provides actionable insights for seasoned and novice investors alike, making this episode essential for anyone looking to understand real estate financing.

Key Highlights:

• Explanation of the capital stack, including senior debt, mezzanine debt, preferred equity, and common equity.
• Discussion on how different tranches cater to varying risk appetites and investment goals.
• Insights on the importance of underwriting risk and market evaluation by sponsors.
• Paul Bennett's reflections on the evolution of financing in real estate from the 1980s to today.

Quotes:

• "Senior debt is in the most protected position of anybody in the capital stack." – Paul Bennett
• "Risk and return are inextricably linked." – Paul Bennett

Understanding Cap Rates, Yield on Cost, Development Spread, and IRR

AAA Storage — Mon, 17 Mar 2025 01:59:00 -0500

In this episode of the AAA Storage Podcast, we discuss the intricate details of real estate investing, focusing on crucial financial metrics like Cap Rates, Yield on Cost, Development Spread, and Internal Rate of Return (IRR). With expert insights from Paul Bennett, we explore how these metrics help investors evaluate properties and predict potential returns. Whether you're a seasoned investor or looking to understand the fundamentals, this episode offers valuable guidance on navigating real estate investments with confidence.

Key Highlights

• Understanding Cap Rates: Learn how cap rates are used to evaluate property values and their influence on risk-adjusted returns.
• Yield on Cost Explained: Discover why yield on cost is vital for real estate developers and its impact on profitability projections.
• Development Spread Insight: Understand the relationship between yield on cost and market cap rates in assessing project returns.
• Internal Rate of Return: Explore how IRR serves as a key measure of an investment's potential growth for investors.
• Overcoming Project Challenges: Paul shares strategies to manage unforeseen project hurdles and maintain target returns.

Quotes

• "We begin with the end in mind—driven by the internal rates of return we can provide our investors." – Paul Bennett
• "Yield on cost and development spread point to the potential return of a project." – Paul Bennett
• "No projection will match reality; it's how you handle the challenges that matter." – Paul Bennett

Behind the Scenes of Leasing and Managing a Self-storage Facility

AAA Storage — Mon, 10 Mar 2025 01:59:00 -0500

In this episode of the AAA Storage Podcast, Paul Bennett and David Luce, the VP of Operations at AAA Storage, explore the intricate details of leasing and managing self-storage facilities—topics rarely uncovered in the industry. David explains the evolution of management practices over the past decade, the role of technology in operations, and provides a comparative look at leasing up new facilities versus managing mature ones. Listeners will gain a deeper understanding of self-storage investing and the strategic processes that drive success in this unique asset class.

Key Highlights:

Industry Evolution: David Luce discusses the dramatic changes in self-storage management over the past 10 years, highlighting the shift from manual to all-digital operations.
Lease-up vs. Maturity: Learn the differences in strategies for leasing up new facilities and managing high-occupancy, mature properties.
Marketing Strategy: The importance of Google and grassroots marketing in attracting tenants to self-storage facilities.
Remote Management: Insights into the growing trend of remote management and how AAA Storage balances technology with human presence.
Investment Due Diligence: What potential investors should consider about a sponsor's property management capabilities.

Quotes:

"Today, everything is done digitally, and that allows a degree of efficiency we couldn't have imagined 10 years ago." — David Luce
"For lease-ups, your goal is to lease it up fast—it's all about that initial velocity." — David Luce
"Grassroots marketing and strong curb appeal are vital—more than 50% of business comes from simple drive-by traffic." — David Luce

Investing in Office and Industrial-Flex Real Estate

AAA Storage — Thu, 27 Feb 2025 07:00:00 -0600

In this episode of the AAA Storage Podcast, Paul Bennett takes us through the significant value to be found in investing in office and industrial-flex real estate. Paul elaborates on the synergy between self-storage facilities and office industrial flex properties, highlighting the advantages these investments bring to a diversified portfolio. This episode offers a clear insight into the diversification benefits and financial dynamics of these real estate investments.

Key Highlights

Explanation of what constitutes office industrial flex real estate.
Synergy between self-storage and office industrial flex investments.
Importance of diversification in mitigating investment risk.
Current market trends and future outlook on office industrial flex properties.
Differences in lease structures and tenant dynamics compared to self-storage.

Quotes

"Adding a second property type to the fund gives you diversity across property types and markets." – Paul Bennett
"The economic efficiency and value creation is very similar to storage." – Paul Bennett

The Future of Self-Storage: Trends and Opportunities

AAA Storage — Wed, 19 Feb 2025 08:00:00 -0600

In this episode of the AAA Storage Podcast, we discuss the future of self-storage investments with expert Paul Bennett. Explore trends shaping the industry, such as the rise of institutional influence and the impact of economic factors like interest rates and home sales activity. Listeners will gain valuable insights into why self-storage remains a resilient asset class and what to consider for future opportunities. Whether you're a seasoned investor or new to self-storage, this episode offers key takeaways on navigating the market.

Key Highlights
• The professionalization and institutionalization of the self-storage industry, with private equity and REITs driving occupancy and pricing trends.
• The influence of interest rates and slowed home sales on self-storage demand, linking economic trends to industry shifts.
• Trends in demographics driving storage demand, including downsizing boomers and household forming millennials.
• The forecasted imbalance in supply and demand due to reduced development activity, creating a potential seller's market in the coming years.
• Insight into market data analysis and site selection metrics crucial for successful self-storage investments.

Quotes
• "Institutionalization has led to a massive move in the market, where now large private equity groups and REITs are key players." – Paul Bennett
• "Self-storage has outperformed every other asset class in real estate during economic downturns." – Paul Bennett
• "The demand data is very solid. We're confident in a consistent growing demand for self-storage." – Paul Bennett
• "More than 50% of tenants still come from the fact that they drive by it one or more times a week." – Paul Bennett

How to Get Started with Self-Storage Investing

AAA Storage — Thu, 13 Feb 2025 07:43:11 -0600

In episode 2 of the AAA Storage podcast, Paul Bennett outlines the essentials of getting started with self-storage investing. With over 30 years of experience in the industry, Paul Bennett shares his expertise on how high-net-worth individuals can transition from residential to commercial real estate investments. The episode provides valuable insights into the benefits of partnering with a sponsor and the due diligence necessary in the investment process. Whether you're a seasoned real estate investor or new to self-storage, this episode offers clear guidance on making informed investment decisions.

Key Highlights:
• Differences between investing in residential real estate and self-storage.
• Benefits of partnering with a sponsor through a fund model.
• Importance of due diligence in selecting investment opportunities and sponsors.
• Understanding investment objectives and how they align with fund strategies.
• The value of engaging a financial advisor, CPA, or attorney during the investment process.

Quotes:
• "Past performance is the best indicator of future performance." – Paul Bennett
• "We try to provide as much information as somebody would want to get questions answered or get additional information." – Paul Bennett

Why Invest in Self-Storage

AAA Storage — Mon, 03 Feb 2025 04:15:22 -0600

In the inaugural episode of the AAA Storage Podcast, we sit down with Paul Bennett, the president of AAA Storage and managing director of Growth Fund One. We discuss the compelling reasons to invest in self-storage—a sector marked by its resilience and efficiency. Paul's extensive experience in real estate syndication offers a look into the strategic advantages and unique approaches that set AAA Storage apart in the industry.

Key Highlights

Understanding self-storage’s market resilience and strong cash flows.
Insights into the operating cost advantages of self-storage facilities.
In-depth discussion on key investment metrics like cap rates and yield on cost.
The distinct value of AAA Storage’s vertically integrated development model.
Exploration of the development-driven growth and equity potential in self-storage.

Quotes

"It's extraordinarily resilient—self-storage has outperformed every other type of real estate." – Paul Bennett
"The yield on cost in the self-storage world is a compelling aspect of the investment." – Paul Bennett
"Our vertical integration and focus on yield on cost allow us to drive above-average returns." – Paul Bennett