What Is My Storage Facility Worth?

Self-storage is one of the highest-performing real estate asset classes and one of the most actively acquired small business types. REITs, PE firms, and individual investors are all competing for storage facilities.

Typical Valuation Ranges

Storage facilities are often valued using capitalization rates on net operating income (NOI), similar to commercial real estate:

• Class A facilities (modern, climate-controlled): 5–7% cap rate (higher value)
• Class B/C facilities (standard, older): 7–10% cap rate (lower value)

In SDE terms, most facilities sell for 3x to 5x SDE — but the real estate component often represents the majority of total value.

Factors that push toward the higher end:

• 90%+ occupancy
• Climate-controlled units
• Modern facility with security systems and electronic access
• Strong location (population density, limited competition)
• Large footprint with expansion potential
• Revenue management system (dynamic pricing)

Factors that push toward the lower end:

• Occupancy below 75%
• Older facility without climate control
• Rural location with limited demand
• No electronic access or security features
• Deferred maintenance
• Month-to-month leases only (standard for storage, but short notice periods)

Key Value Drivers

Occupancy rate is paramount. Facilities at 90%+ occupancy demonstrate market demand and pricing power.

Revenue per square foot measures rate optimization. Strong facilities generate $12–$20+ per square foot annually.

Climate-controlled units command 25–50% rent premiums and attract higher-quality tenants.

Location within a 3–5 mile radius determines your customer base. Population density and household income drive demand.

How to Increase Your Facility's Value

1. Maximize occupancy. Online marketing, rate optimization, and move-in specials fill units.
2. Implement revenue management. Dynamic pricing (raising rates on existing tenants in line with market) increases revenue per unit.
3. Add climate control. Converting units to climate-controlled increases rent per square foot.
4. Upgrade security. Electronic access, cameras, and individual unit alarms reduce risk and justify premium pricing.
5. Maintain the property. Curb appeal, clean driveways, and well-maintained buildings attract tenants and buyers.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.