Self Storage Investment Guide
Why Invest in Self Storage?
Self storage has become one of the most attractive commercial real estate asset classes:
- Recession-resistant - Demand often increases during economic stress (downsizing, moving)
- Low management intensity - No toilets, tenants, or trash compared to apartments
- Month-to-month leases - Quickly adjust rents to market rates
- Scalable operations - Technology enables remote management of multiple facilities
- Fragmented market - Many mom-and-pop operators create value-add opportunities
Key Metrics for Self Storage
Revenue Per Square Foot - Total revenue divided by rentable square feet. Typical range: $8-$15/sq ft annually.
Physical vs Economic Occupancy - Physical is units rented / total units. Economic accounts for discounts and concessions.
Expense Ratio - Operating expenses as percentage of gross income. Well-run facilities: 30-40%.
Sizing up what a facility is worth rather than modeling the full deal? The self storage valuation calculator gives you NOI ÷ cap rate value, a range, and price per square foot in seconds.
Self Storage Operating Expenses
- Property taxes: 10-15% of revenue
- Insurance: 3-5% of revenue
- Management: 5-8% of revenue
- Utilities: 3-5% of revenue
- Repairs & maintenance: 3-5% of revenue
- Marketing: 2-4% of revenue