Acquire, expand, or refinance self storage facilities — from single assets to small portfolios
Self storage has become one of the more sought-after commercial property types, largely because of how it operates: minimal staffing, low operating expense ratios relative to other asset classes, and revenue spread across hundreds of small tenants rather than concentrated in a handful of leases.
That profile is attractive to own. It also means underwriting a storage facility looks at genuinely different things than underwriting an office or retail building.
Physical occupancy counts units rented. Economic occupancy measures rent actually collected against gross potential. Those two numbers can diverge sharply at a facility running heavy move-in concessions, so both get examined — a site at 90% physical and 70% economic is a different asset than the headline suggests.
A facility weighted toward small climate-controlled units generally produces more revenue per square foot than one built around large drive-up spaces. The mix, not just total square footage, shapes the income assumption.
Unlike a building with a few long leases, storage sees continuous move-in and move-out on month-to-month agreements. The trailing rent roll and the recent trend line matter far more than any individual lease document.
Storage typically runs leaner than most asset classes, which supports debt service. It also means there is less expense to cut if revenue softens — so the local supply pipeline gets close attention, since new facilities opening nearby can compress rents quickly.
Program parameters shown are current as of publication and are subject to change. All financing is subject to credit approval, property and business review, and program availability. Commercial and business-purpose financing only.
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