Self-Storage

Self-Storage

Self-storage is a $38 billion industry, with nearly 46,000 self-storage facilities in the United States.  Although the majority of facilities (roughly 73%) are privately owned by small, local owner/operators, the overall trend in the industry is toward consolidation as owners of multiple regional facilities are able to capitalize on operating efficiencies.  Because self-storage is a fee simple asset with short-term lease contracts, monthly rates can change at any time. More sophisticated operators often utilize complex revenue management systems to maximize cash flow.

The valuation of self-storage properties requires an in-depth study of the facility’s market area in order to determine the underlying fundamentals that impact occupancy and rental rates. The process begins with an analysis of current market supply and demand trends, typically within a three-mile trade area around the property, which determines whether the trade is over-supplied, under-supplied, or in equilibrium. Depending on the location, age and quality of the facility, the value of a property is then determined using two to three of the typical valuation methodologies: the cost, sales, and/or income approaches.

NVC’s expertise spans the entire range of self-storage properties from older mom-and-pop operated facilities to established or proposed Class A properties featuring high-quality construction, climate-controlled units and core locations.  Our valuation team has completed nearly 250 self-storage assignments spanning 27 states over the past five years, involving some of the largest self-storage providers and financial institutions in the United States as well as individual property owners seeking valuation expertise for tax appeals, divorce proceedings or other intended uses.

Click here to download the most recent brochure:  NVC – Self Storage Brochure

Recently Completed Self-Storage Facility Assignments: