Expenses at the property include these basic categories:

  • Real Estate Taxes
  • Property Insurance
  • Repairs & Maintenance
  • Administration
  • On-Site Management
  • Off-Site Management
  • Utilities
  • Advertising

Generally, expense ratios range between 30% and 50%.

The following is a chart that summarizes each expense category in detail.

Currently, the biggest hot button expense impacting the value is real estate taxes.

Self storage product across the nation can range from $30 to more than $400 per square foot. The decline in capitalization rates coupled with the improvement in the economy has resulted in significant increases in value across the market.

Self storage is technically an industrial use, and some assessor’s continue to value it as a storage warehouse use, which can result in a significantly lower value. However, with the influx of sales over the past three years, assessors have realized the value of a self storage facility. Therefore, assessments are on the rise, as many states require them to be based on 100% of market value. It is very important to understand the tax laws in the state and to forecast accordingly, particularly if a sale is involved.


Kate Spencer

Kate joined Cushman & Wakefield of Texas, Inc. as a real estate appraiser upon graduation from The Wharton School of the University of Pennsylvania in 2004. She was promoted to Managing Director of the Valuation & Advisory Self Storage Practice Group in March 2016. Since 2010, she has spent the majority of her time focused on the valuation and advisory of self storage facilities. Assignments include market and feasibility studies and appraisals of proposed, expanding and existing storage facilities. Currently, Kate oversees a team of approximately 20 valuation members located strategically throughout the U.S. which ensures consistency and quality and the ability to provide coverage in all 50 States. In addition, she is responsible for the compiling and publishing a bi-annual Cushman & Wakefield Self Storage Investor Report, managing portfolio valuation and overseeing the SSDS (Self Storage Database Services) database, which is the largest and most comprehensive self storage database in the United States.