What is a good Cap Rate for self-storage investments?

Self-storage Cap Rates typically range from 6.5% to 9.0% depending on market tier, class of facility (drive-up vs climate-controlled), and whether operations are automated.

What is Breakeven Occupancy in self-storage?

Breakeven occupancy is the minimum percentage of units that must be rented to cover all operating expenses and debt service (mortgage). Healthy self-storage facilities target a breakeven occupancy below 65-70%.

Self-Storage Investment & Cap Rate Calculator

Analyze commercial self-storage facility acquisitions. Model Net Operating Income (NOI), Cap Rate, breakeven occupancy, and Cash-on-Cash dividend flow.

Facility & Acquisition Terms

Commercial Deal Analyzer

Facility Strategy Presets

Total Storage Units

Units

Average Monthly Rent per Unit ($)

Economic Occupancy Rate (%)

Purchase Price ($)

Down Payment (%)

Loan Interest Rate (%)

Operating Expense Ratio (% of Gross Income)

Facility Returns & Cash Flow

Net Monthly Cash Flow

Annual NOI: $0 / yr

Cap Rate

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Cash-on-Cash Return

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Breakeven Occupancy

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Debt Coverage (DSCR)

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Gross Potential Revenue (100% Occ) $0.00 / yr

Effective Gross Income (EGI) $0.00 / yr

Operating Expenses (OpEx) -$0.00 / mo

Annual Debt Service (P&I) -$0.00 / mo

Total Cash to Close (Down + 2.5% Closing) $0.00

Self-Storage Investment & Underwriting FAQs

Why is Self-Storage considered a recession-resilient asset class?

Self-storage demand is driven by the '4 Ds' (Dislocation, Downsizing, Divorce, and Death), which occur in both economic expansions and downturns. Month-to-month leases also allow operators to rapidly adjust rental rates for inflation.

What is a target Debt Service Coverage Ratio (DSCR) for commercial lenders?

Most commercial banks and SBA lenders require a minimum DSCR of 1.25x (meaning Net Operating Income exceeds debt payments by at least 25%). Top-tier facilities target a DSCR of 1.40x or higher.