IRVINE, CA—An emerging trend in the financingmarket for self-storage is the increasing numberof developments andredevelopments taking place, TalonvestCapital Inc. principal Tom Sherlock tellsGlobeSt.com. Following a record year for the boutiquemortgage-brokerage firm, which closed in 2015 more than $474 million offinancings including perm loans, bridge loans and JV equity forself-storage, office, industrialand apartment properties across the country, wespoke exclusively with Sherlock about the self-storage sector andwhat he expects to see from it this year.

GlobeSt.com: What emerging trends are you noticingfor 2016 in the self-storage sector?

Sherlock: The emerging trend inthe financing market for self-storage is the increasing number ofdevelopments and redevelopments taking place. Since the secondhalf of last year, especially in the fourth quarter through January2016, Talonvest has been working on a rapidly growing number ofground-up construction loans, includingcertificate of occupancy deals, and redevelopment bridgeloans. While there is a growing supply of lenders providingthis type of capital to meet the growing demand,the underwriting discipline appears to be remainingstrong. That dynamic is good for the longer-term health of thestorage industry.