Self-Storage Facility
America's stuff needs a place to live
Self-storage facilities rent out individual units on a monthly basis to people and businesses who need extra space. The industry benefits from incredibly sticky customers — average tenancy is over a year — and exceptionally high margins. It is one of the most resilient asset classes in commercial real estate.
Avg Revenue
$600K
Profit Margin
65%
Acquisition Multiple
4x - 6x
Startup Cost
$1.0M - $5.0M
Difficulty
4/5
How It Works
Tenants rent units monthly. Most facilities offer a range of sizes from 5x5 closets to 10x30 garages. Revenue grows by increasing occupancy, raising rates on existing tenants, and adding ancillary income like truck rentals, insurance, and retail supplies. Technology enables remote management.
Revenue Range
Pros
- +Highest margins in boring businesses (60-70%)
- +Very sticky customers with long average tenancy
- +Minimal staffing — many facilities run with 1-2 people
- +Strong real estate appreciation and development upside
Cons
- -Very high upfront capital to build or acquire
- -Zoning and permitting can be extremely difficult
- -Increasing competition from REITs and institutional investors
Best For
Experienced investors with access to capital seeking premium returns
Operating Costs
Operating costs are very low — primarily property taxes, insurance, minimal utilities, and 1-2 employees, which is why margins are so high.
Where to Buy
- BizBuySell →
Find self-storage facilities for sale across the US
- Argus Self Storage →
Dedicated self-storage brokerage with nationwide listings
- LoopNet →
Commercial real estate platform with self-storage properties
Quick Facts
- Category
- physical
- Difficulty
- 4/5
- Acquisition Price
- $2.4M - $3.6M