Self Storage Cap Rates: What Storage Facilities Sell For
Self storage cap rates average about 6.6% for 2026 per Marcus & Millichap. What moves a storage facility's cap rate, how its NOI works, and value at each rate.
By the CapRateCalculator.co team
Self storage cap rates average about 6.6%. Marcus & Millichap’s 2026 self-storage outlook puts the sector average at 6.59%. Large climate-controlled facilities in growing metros trade below that, and small, older or rural facilities above it.
What a self storage cap rate means in dollars
Value is NOI divided by the cap rate. Here is a facility producing $750,000 of NOI at rates around the sector average:
| Cap rate | Value of $750,000 NOI |
|---|---|
| 5.75% | $13,043,000 |
| 6.59% (2026 sector average) | $11,381,000 |
| 7.50% | $10,000,000 |
Less than two points of cap rate move the value by $3 million. On a storage deal, the cap rate you assume matters as much as the rent roll.
What moves a storage facility’s cap rate
Occupancy and rent trends. Storage is leased month to month, so income responds quickly to demand. Facilities with stable occupancy and steady rate increases for existing customers trade at lower cap rates.
New supply nearby. A new facility a mile away can take occupancy fast. Marcus & Millichap’s outlook says development is slowing, which supports values for existing facilities.
Size and quality. Climate-controlled, multi-story facilities with good visibility attract institutional buyers, including the big storage REITs, and trade at the low end. Small drive-up facilities rely on local buyers and trade higher.
Management. A facility run by its owner with no online pricing or marketing often has income a professional operator can raise. Buyers price that upside, but they pay for the current NOI, not the future one.
How self storage NOI is built
Income is rent plus fees: admin fees, late fees, tenant insurance or protection plans, and retail sales of boxes and locks. Expenses are property taxes, insurance, on-site payroll, marketing, utilities, repairs, credit card fees and a management fee. Capital spending is light compared with apartments, since there are no kitchens or bathrooms to replace.
Watch the property tax line. Many states reassess on sale, and the new bill on a facility priced at $11 million can be far above the seller’s. The cap rate valuation guide shows how to rebuild NOI before dividing, and the market cap rate guide covers how to check a survey figure against local sales.
Self storage cap rates vs other property types
Storage sits between apartments and retail. See cap rates by property type for the full comparison, or run your own facility’s numbers in the cap rate calculator.
Frequently asked questions
What is the average cap rate for self storage?
Marcus & Millichap puts the sector average at about 6.59% in its 2026 self-storage outlook. Large, newer facilities in strong metros trade below that. Small, older or rural facilities usually trade above it.
Why are self storage cap rates higher than apartment cap rates?
Storage rents are month to month and operations matter more: pricing, occupancy and marketing drive income, and new supply can arrive quickly. Buyers want more yield for that. In return, storage has low capital needs and no tenant improvements, which is why it often trades close to apartments rather than far above them.
How do you value a self storage facility?
Build NOI from collected rent, fees and other income, less taxes, insurance, payroll, marketing, utilities, repairs and a management fee even if you self-manage. Divide by the market cap rate for comparable facilities. At a 6.59% cap rate, $750,000 of NOI supports a value of about $11.4 million.