30 Jun 2025
Over the last decade, self-storage has become one of the fastest-growing sectors in real estate, propelled by lifestyle shifts, urban density, and the increasing need for space. If you're looking to invest, operate, or simply understand the market better, learning the language of the industry and acquiring self storage data is one of the smartest places to start. At Radius+, we believe that data is most powerful when paired with clarity. That’s why we’ve broken down the most common (and most important) terms every new self-storage investor should know, and how these concepts tie directly into the insights Radius+ provides.
A REIT (Real Estate Investment Trust) is a company that owns income-producing properties that are highly recognized. Think names like Public Storage or Extra Space Storage.
Non-REITs, by contrast, are private owners or small firms, often more agile but without access to public capital.
Radius+ has tools to identify which facilities are REIT-owned versus independently owned in your target market. Tracking self-storage REITs offers a clear view into industry trends like occupancy, rental rates, and market demand. Their performance signals where opportunities or risks may lie, especially in specific geographic areas. For new investors, REITs serve as valuable benchmarks and early indicators of shifting market conditions.
This metric calculates the total net rentable square footage of self-storage in a market divided by its population. The national average in the U.S. typically hovers around 6-7 sq ft per capita.
Too high? You might be entering an oversaturated market. Too low? You could be staring at an opportunity.
Search any ZIP code on Radius+ to instantly view sqft per capita within a 1, 3 or 5 mile radius, or create a custom area with the polygon tool and assess market saturation. Lower figures often signal unmet demand.
NOI is the income a property generates after all operating expenses (utilities, staffing, maintenance) are subtracted, but before debt and taxes. It’s a critical measure of a facility’s profitability and valuation.
When analyzing comps, look at facility-level financials where available and compare NOI margins to understand market norms.
A cap rate is the expected return on an investment property, calculated as:
Cap Rate = NOI / Purchase Price
Lower cap rates suggest a safer, more stable asset. Higher ones may signal more risk or a less competitive market. Example: A facility with $300,000 in annual Net Operating Income (NOI) that sells for $5 million has a cap rate of 6%.
This refers to all self-storage facilities currently in planning, under construction, or recently delivered in a market. An oversaturated pipeline can crush lease-up efforts for new developments.
Use Radius+ to monitor development pipelines in any market so you can spot oversaturation early and make smarter, lower-risk investment decisions.
Revenue management means using data to dynamically price units based on availability, demand, and competitor behavior.
Most REITs update rates daily. Smaller operators are catching up.
Radius+ Advantage: Analyze live rates across your trade area using Radius+’s Rate Analytics or implement Radius+ real time rental rate API feature to stay competitive.
This measures the difference between market rent and what tenants are currently paying. It's often the result of outdated leases, discounts, or slow rent increases.
Example: If market rent for a unit is $120 but most tenants pay $100, your facility is experiencing a $20/unit loss to lease.
Operators aim to reduce this gap through steady rent increases and better revenue management.
Many operators offer promotional rates on their websites to convert digital leads, often lower than the rates available for walk-ins.
Example: A 10x10 unit may be advertised online for $99/month but quoted at $125 in-person. Understanding this delta is key to pricing competitively and interpreting comp data.
While web rates (gross) are advertised, achieved rates (net) represent what customers actually pay after factoring in discounts, promotions, or legacy leases.
Tracking both gives you a better picture of revenue reality versus marketing.
Radius+ User Tip: Combine rate data with lease-up progress to understand whether a market’s advertised rates are truly sustainable.
A new facility typically goes through a lease-up period after opening, during which it builds occupancy and revenue. This phase can last 12 months to 3 years depending on market conditions and marketing strategy.
Underwrite conservatively during lease-up projections, especially in areas with a strong development pipeline.
Use Radius+ to analyze local development pipelines, forecast lease-up timelines, and build more accurate, risk-aware projections before you invest.
Your trade area is the geographic region where most of your tenants live, often within a 1-, 3-, or 5-mile radius. Understanding the population density, income, and rental demand within this area is crucial for site selection.
Visualize and analyze your facility’s trade area directly in Radius+ using detailed demographic overlays and competition maps. Access to accurate self storage data enhances your ability to evaluate these factors with confidence.
This is the amount of space you can actually rent to customers. It excludes hallways, bathrooms, and offices. Your NRSF drives revenue projections, pricing, and occupancy metrics.
Example: A building might be 60,000 sq ft in total, but only 48,000 sqft is rentable. That 48,000 is what drives your income, not the whole building footprint.
Your rent roll is a detailed report showing every rented unit, the customer, rent rate, lease status, and length of occupancy. It's a critical document in due diligence and valuation.
When buying or selling, a clean rent roll is just as important as physical condition or location.
This measures annual pre-tax cash flow as a percentage of your initial investment.
Example: Invest $800,000, receive $80,000 annually = 10% cash-on-cash return.
It’s a key metric for operators focused on cash flow versus long-term appreciation.
An Offering Memorandum is a sales document prepared outlining the investment highlights, financials, and local market data of a self-storage property.
When evaluating a deal, always cross-reference OM projections with verified data, like what Radius+ provides, to ensure you're getting the full picture.
The unit mix is your distribution of unit sizes and types (such a climate, non climate, drive up, etc).
A well-balanced mix includes a blend of small (5x5), medium (10x10), and large (10x20) units to match diverse demand.
Radius+ enables you to analyze competitors’ unit mixes to inform your design or acquisition criteria.
These are properties publicly listed for sale through brokers or platforms.
Use Radius+ to monitor market trends and price comps to support your underwriting.
Off-market deals are not listed. They're typically sourced via direct outreach, broker relationships, or owner networking.
These often offer better pricing and less competition but require deeper market knowledge, which Radius+ provides.
ECRI common self-storage strategy where rental rates are raised for current tenants after a set period, typically three to nine months.
This helps operators boost revenue, align rents with market rates, and reduce "loss to lease" from outdated or discounted pricing.
For example, a tenant paying $100/month may see their rate increase to $110 after six months. ECRI is widely used by both REITs and private operators.
At Radius+, you can analyze achieved vs. market rates to optimize your ECRI strategy and ensure your pricing stays competitive in any market.
A Letter of Intent is a non-binding proposal outlining terms of a deal - price, closing date, etc. - a due diligence period before entering a formal contract. Investors use LoIs to gauge seller interest and secure deal priority.
Bridging the gap between what you're charging (achieved rate) and what you could be charging (market rate) can drive immediate value.
Use Radius+’s real-time pricing tools to monitor market rent changes and adjust your strategy accordingly.
Entering the self-storage industry can be both rewarding and challenging, but having a firm grasp on key terms and self storage data gives you a strong edge. Whether you're acquiring your first facility, conducting a market study, or simply exploring feasibility, tools like Radius+ are built to make this process smarter, faster, and more data driven.
