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Buying Self-Storage: a buyer's guide

Typical price range

Commonly valued on net operating income and a market capitalization rate, much like other real estate. Illustrative range: from several hundred thousand dollars into the millions.

Numbers on this page are illustrative only, not market data. Get a professional valuation.

What to verify during due diligence

• Rent roll, occupancy and delinquency history
• Street rates vs. in-place rates
• Property condition, roofs, paving and security
• Zoning and any expansion land
• Property tax reassessment risk after sale

Red flags

• Occupancy inflated with move-in specials
• Large new supply planned nearby
• Deferred maintenance
• Tax reassessment that erases projected income

Financing options

• SBA 504 loans
• Conventional commercial mortgages
• Seller financing

Talk to a qualified broker, lender, accountant and attorney before buying. Sponsor listings for this category: coming soon.