Self-Storage Facility Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
A self-storage facility is valued on net operating income divided by a cap rate, the middle of the band for stabilized self-storage unless you enter your own. Occupancy below a stabilized level is flagged, and debt net of cash is deducted to reach the equity.
Who this is for
Owners of single self-storage facilities or small portfolios planning a sale or a refinancing, and buyers who want the property priced on its income rather than on a rule of thumb per square foot.
How is a self-storage facility valued?
A self-storage facility is valued on net operating income over a cap rate: rent and ancillary income, such as tenant insurance, fees and retail sales, less the property's operating expenses, before debt, depreciation and owner overhead. VA uses the net operating income you enter, or builds it from rental income less property expenses in your statements, and reads EBITDA in its place only as a last resort. The cap rate is the middle of a band for stabilized self-storage unless you enter your own. Occupancy below a stabilized level is flagged, because the income has not matured and a cap-rate value can overstate the property. In a full report this reading carries most of the weight, with a discounted cash flow, comparable companies and precedent transactions as cross-checks, and debt less cash is deducted to reach the equity. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of a self-storage facility?
- Net operating income, rent and ancillary income less the property's operating costs
- Occupancy, and whether the facility is stabilized or still leasing up
- Street rates against the rates existing tenants pay, and how often rates are raised
- Ancillary income such as tenant insurance, fees and retail sales
- Climate-controlled space, access and security, which support the rents
- Competing supply within the facility's trade area
What lowers the value of a self-storage facility?
- Income that has not matured while the facility leases up
- New competing supply nearby
- Street rates falling below the rates existing tenants pay
- Ancillary income left out of the figures
How much is a self-storage facility worth? A worked example
A self-storage facility, by cap rate
Take a self-storage facility at 90% occupancy with $820 K of net operating income, its rent and fees less the property's operating costs. VA's cap-rate model divides it by 6.5%, the middle of the 5.5% to 7.5% band where stabilized self-storage has traded, which puts the property at about $12.6 M. After $5 M of debt less $250 K of cash, the equity is about $7.87 M. The same site still leasing up, at 74% occupancy with $560 K of net operating income, comes to about $8.62 M for the property and $3.87 M of equity at the same 6.5%, and VA flags that its income has not matured, so a cap-rate value can overstate it. In a full report, this reading carries most of the weight, with a discounted cash flow, comparable companies and precedent transactions as cross-checks.
Illustrative figures from the industry model alone. A full report blends it with a discounted cash flow, comparable companies and precedent transactions.
Value your self-storage facility in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Which numbers matter most?
Net operating income
Rent and ancillary income less property operating expenses, before debt, depreciation and owner overhead. The figure the cap rate is applied to.
Cap rate
Net operating income divided by value. VA uses the middle of the band for stabilized self-storage unless you enter your own rate, and shows the range from one end of the band to the other.
Physical occupancy
Rented units over total units. Below a stabilized level the income has not matured, and VA flags the result.
Ancillary income
Tenant insurance, fees and retail sales. High-margin income that belongs in net operating income and is often missing from a seller's summary.
Equity after debt
The property value less debt, net of cash. What the owner keeps if the facility is sold and the loan repaid.
What do you need to value a self-storage facility?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- A trailing twelve-month operating statement with ancillary income shown
- The current rent roll with occupancy by unit type
- Recent sales of comparable facilities, if you have them
Example scenarios
A stabilized facility
A mature facility with steady occupancy is valued on its net operating income at the middle of the band. The worked example shows the property value and the equity after the loan.
A facility still leasing up
A newer facility that has not filled has lower income, so the same cap rate gives a lower value, and VA flags that the income has not matured. A buyer funding the rest of the lease-up will expect a discount for it.
Further reading
Business Valuation Methods Explained: DCF vs. Comps vs. Precedent Transactions
The five business valuation methods professionals actually use (DCF, comparable companies, precedent transactions, SDE/EBITDA multiples, and asset-based), when each wins, and how they combine into one defensible number.
WACC Explained: Why Your Discount Rate Can Make or Break a Valuation
WACC is one of the most misunderstood terms in business valuation. Here's what it is, why it matters, and how it directly affects what your business is worth.
DCF Analysis Explained for Private Companies
A clear, practical guide to discounted cash flow analysis for private companies. Learn the five key steps, how to estimate WACC without public market data, terminal value approaches, and common pitfalls to avoid.
Frequently asked questions
How is a self-storage facility valued?
On net operating income divided by a cap rate. Net operating income is rent and ancillary income less the property's operating expenses, before debt, depreciation and owner overhead. An EBITDA multiple is not the right frame for a rental property.
What cap rate does VA use?
The middle of a band where stabilized self-storage has traded, unless you enter your own rate. The report shows the value at both ends of the band, so you can see how much the rate matters.
Does occupancy change the value?
It changes the income, and with it the value. Below a stabilized level VA also flags the result, because the income has not matured and a cap-rate value can overstate the property.
Should tenant insurance and fees count?
Yes. Tenant insurance, fees and retail sales are real, high-margin income and belong in net operating income. They are also frequently missing from a seller's summary, which understates the value.
What if I have no net operating income figure?
VA builds one from rental income less property expenses in your statements. Only when neither is available does it read EBITDA in its place, which usually runs close for a single facility.
Is this a certified appraisal?
No. This is an informational estimate. A lender or a purchase contract will require a licensed real estate appraisal, which this does not replace.
Terms used on this page
- Net operating income (NOI)
- A property's rent and other income, less vacancy and every operating expense, before debt service, depreciation and income tax. It is the income a cap rate is applied to.
- Capitalization yield
- The yearly earnings a buyer requires as a share of the price. The value is the earnings divided by the yield, so a lower yield means a higher value.
- Enterprise value
- The value of the business itself, before debt is subtracted and cash added. The owner's proceeds come from what is left.
- Discounted cash flow (DCF)
- A valuation that projects the cash a business will generate over the coming years and discounts it to today at a rate that reflects the risk of receiving it.
As featured in
Value your self-storage facility
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Last reviewed September 26, 2026 against VA's valuation models.