Storage Valuation & Cap Rate Calculator
Storage trades on a cap rate: value equals NOI divided by the cap rate. Know any two of value, cap rate, and NOI, and this solves the third — plus value per unit and per square foot. Pair it with the NOI calculator if you need the NOI first.
What do you want to solve for?
Pick the unknown. Enter the other two below and we'll compute it.
The known numbers
Per-unit detail (optional)
Add units and rentable square footage to get value per unit and per square foot, useful comps when you're buying or selling.
value = NOI ÷ cap rate
Annual NOI
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Cap rate
6.5%
Value / unit
add units
Value / sq ft
add sq ft
At a 6.5% cap, every $10,000 of added annual NOI is worth about $154,000 of value. Marketing that fills units compounds.
The math
How storage valuation works
What is a cap rate?
The capitalization rate is the annual NOI as a percentage of the price. A facility with $300,000 NOI selling at a 6% cap is worth $5,000,000 ($300,000 ÷ 0.06). Lower cap rate = higher price for the same NOI.
Why does a lower cap rate mean a higher value?
Cap rate is the buyer's required yield. When buyers accept a lower yield, because the market is hot or the asset is strong, they pay more for each dollar of NOI, so value rises.
What cap rate should I use?
Use what comparable facilities in your market are actually trading at. Storage broadly runs in the mid-5% to mid-7% range, but it moves with interest rates, asset quality, and location. A broker's recent comps beat a rule of thumb.
How do I grow the value?
Grow NOI. At a fixed cap rate, value moves one-for-one with NOI, and NOI grows when you fill units and hold rate. That is the entire case for treating marketing as a value-creation lever, not a cost.
Value is just NOI with a multiplier
Every unit you fill and every rate you hold compounds into asset value at your cap rate. StorageAds runs the ads that move NOI. Built by an operator, tested on our own facilities first.
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All toolsThis calculator is an estimating tool and does not constitute an appraisal or investment advice. Cap-rate valuation is a simplification; actual transaction value depends on comps, condition, lease-up, and terms. Confirm with a broker or appraiser before transacting.