Self-Storage Facility ROI Calculator
Self-storage is the highest-margin commercial real estate asset class — 65-75% NOI margin once stabilized. Calculate revenue per rentable sqft, occupancy, expense ratio, and cap rate.
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Self-storage is the highest-margin commercial real estate asset class — 60-70% NOI margin once stabilized vs 40-50% for apartments. Low headcount, minimal repairs, no plumbing per unit. Revenue per rentable square foot is the key metric: $10-$15 in standard markets, $18-$22 urban infill, $25+ in Manhattan/SF. Cap rates 4.5% (Tier 1) to 7.5% (tertiary).
Why Self-Storage Has 60-70% NOI Margin
Compared to apartments (40-50%) and office (35-45%): self-storage has no plumbing per unit (no clogged toilets, no leaks), no kitchens (no appliance replacement), 1-2 employees for the entire facility, minimal common areas, and monthly leases that re-price quickly to market. Operating expenses run 30-40% of gross income vs 50-60% for residential.
Supply Risk Is the #1 Threat
Self-storage construction boomed 2018-2024 — over 200M sqft built. Many MSAs (Atlanta, Phoenix, Charlotte, Nashville) are over-supplied. Before buying: check 3-mile and 5-mile competitive set, check rental rate trends over last 24 months (declining = oversupply), check pipeline of permitted-but-unbuilt facilities at city planning office. Buy only in markets with <8 net rentable sqft per capita and stable or rising rents.
Last updated May 2026. Sources: Self Storage Association.