As self-storage professionals, we are here to serve self-storage owners in the beginning stages of understanding the value of their facility and to help navigate the process of a sale if you choose to move in that direction.
See if buyers are looking to expand their footprint in your sector.
Understand the value and worth of your company to potential buyers.
See a peliminary assessment of saleability for your business
FREQUENTLY ASKED QUESTIONS
Self-storage facility valuations are calculated by taking into account the cash flow generated from rental income and any associated expenses, such as operating costs, taxes, and insurance. The value is then determined by comparing the cash flow with similar facilities in the same area.
The value of a self-storage facility also depends on its occupancy rate. Self-storage facilities that have higher occupancy rates tend to be valued more highly than those with lower occupancy rates. Factors such as amenities offered at the facility, visibility, and ease of access can also influence its valuation.
Other important factors to consider when calculating the value of a self-storage facility include potential for future growth, local market conditions, existing leases or agreements, and potential competition from other similar facilities in the area.
Knowing the value of your self-storage facility is important for a number of reasons. First, it can help you determine the overall financial health and potential profitability of your business. Knowing the value can also help you set appropriate rental rates to maximize revenue while not pricing yourself out of the market.
Additionally, knowing the value of your facility can be helpful when it comes time to sell, refinance, or make other financial decisions. Having an accurate valuation will give you more negotiating power and increase your options when making decisions about your business.
Finally, having an accurate valuation will help you better understand how external factors such as changes in local market conditions may affect the value of your facility in the future.
This varies on multiple factors. This is mostly dependent on the qualification of the prospective buyer. The most active buyers for commercial real estate assets are either Private Equity firms or REITs.
When selling to these types of groups, it is typically a much shorter process because they have debt and equity already in place to be able to make a sizable purchase. For individuals and some syndication funds it may be a longer process because they will need to either raise the equity or secure the financing, or both.
However, there are plenty of highly qualified individuals and syndicates, but it is important to know ahead of time before going into a contract with these kind of groups.
“The valuation process from Sell That Storage was simple, easy and hassle-free. I would definitely recommend it to other storage owners.”
“The Sell That Storage team were extremely helpful, accommodating and most of all patient with all of my questions.”
“Sell That Storage played a large part in my decision making when I was considering using my storage facility for my retirement.”