Facility Value

“Capitalization rate” might be the most misunderstood term in self-storage. Let’s go beyond calculation to learn how this figure can fluctuate with market conditions and investment risk to impact property value.

Valuing a self-storage facility isn’t an exact science. While net operating income remains a key focus, owners also need to understand their current market and the nuances of what creates value, and then adjust their income and expenses accordingly.

Small operational changes can sometimes yield significant increases in self-storage facility value. Read a few ways for owners to improve valuation from someone who specializes in acquisitions and investment optimization.

To maintain self-storage facility value, owners should focus on business principles that lead to strong yields. Watch these key performance indicators to keep your operation financially sound.

“Capitalization (cap) rate” is the most used and least understood financial term in self-storage. Here’s some insight to what it means, how it factors into potential property income, and how it can be used to determine facility value.