While Storage Stagnated Post-COVID, Barry Sherman’s Aviation Bet Took Off

I sat down with my mentor and S3 Partners principal, Barry Sherman, to break down what it takes to finance, entitle, and build self-storage, small-bay flex, and private aviation hangars heading into 2027. As the self-storage development cycle navigates a prolonged "long valley," building a standard 100,000-square-foot facility has surged from a $6M–$7M all-in cost in 2019 to $13M+ today. Paired with banks pulling leverage back to 60%–65% LTC at near-8% interest, developers now must bring $5M to $6M in upfront cash equity to break ground. In this episode of Storage Unlocked, brought to you by our title sponsor MLCO Construction, Barry breaks down why developers should keep pushing entitlements today to open right as the market rebounds, how small bay flex is shifting from gross storage leases to triple-net models, and why private aviation faces an unprecedented 20M to 60M square foot hangar deficit. Timestamps: 00:00 – Development at the Crossroads: Patience vs. Aggression in Q4 2026 01:48 – Navigating Storage's "Long Valley" Upward Trend 03:33 – Bank Requirements: 60% LTC, Higher Reserves, & Balance Sheet Scrutiny 06:07 – Steel & Commodity Pressures: The Data Center Impact 09:50 – Why Small Bay Flex Gained Massive Ground Over Traditional Storage 13:41 – Owner's Rep & Project Management: Structuring Budgets with Scars 15:55 – 2019 vs. 2026 Math: From $6M All-In to $13M+ Replacement Costs 17:34 – Colorado Transactions: Need-to-Transact Sales vs. Distressed Traumas 21:26 – Aviation Real Estate: Meeting the 20M–60M SF Hangar Demand 25:34 – The 2027 Storage Development Outlook Our Title Sponsor: MLCO Construction: Institutional-quality construction, delivered on time and on budget, with a hospitality mentality. Visit https://mlcoconstruction.com/ Our Data Partner: TractIQ: Track verified pipeline developments, municipal permits, and facility metrics nationwide: tractiq.com