f you own or manage storage facilities, you are well aware of the many things that go into budgeting, including roofing, landscaping, exterior maintenance, and security systems, just to name a few. Yet asphalt and concrete repairs often end up at the bottom of the list. Many people simply put them off, hoping the problems will magically go away.

Unfortunately, there isn’t an asphalt fairy fixing parking lots while we sleep. The longer pavement issues go without repair, or if they are repaired incorrectly, the more money owners end up wasting. Small issues become larger problems, which ultimately lead to more expensive repairs down the road. This can wreak havoc on yearly budgets.

Something I see countless times as a national account executive at The Pavement Group is facilities teams and owners completing permanent spot repairs year after year until they eventually decide to mill and pave the entire lot. Without a plan, you are essentially throwing money out the window. Those permanent patches that were installed along the way often get milled up and sent back to the plant to be recycled into new asphalt for your next self-storage paving project.

That’s why having a five-year plan is so important. Ask yourself:

• What is the goal for the property over the next five years?
• How much budget will be allocated to pavement maintenance?
• Are you planning to sell the property?
• Are there safety hazards that need immediate attention?

Sharing the answers to these questions with your paving contractor will help them develop a structured plan that is best for your property.

You wouldn’t start a business without a five-year plan. You wouldn’t try to lose weight without a plan. So why do so many owners manage one of their most valuable assets in a reactive way?

Let’s be honest: The most expensive asphalt repair is rarely the large paving project owners plan for—it’s the emergency repair that happens when pavement fails years earlier than expected.

There are five important things self-storage facility owners may not know about their asphalt.

Crack filling alligator or spider web cracking is like putting a bandage on a broken bone. It simply doesn’t address the real problem. Even if you seal the larger cracks and apply sealcoat, there will still be numerous intrusion points for water. Water will continue to work its way beneath the surface and break down the asphalt. As many contractors say, this approach is essentially “putting lipstick on a pig.”

A reliable contractor would not recommend this as a long-term solution for pavement that has already reached this stage of deterioration. However, budget limitations are a reality for many property owners. In those cases, contractors have a job to clearly explain that this type of work would be only cosmetic in nature, would not extend the structural life of the pavement, and should not be viewed as a repair. When clients fully understand those limitations, some may still choose this approach as a short-term appearance improvement while planning for more substantial repairs in the future.

While expanding the repair area may cost slightly more upfront, it often leads to a much longer lifespan for the repair. It can also reduce future mobilization costs for crews that would otherwise need to return the following year. Additionally, there’s rarely a cheaper time to buy asphalt than today! Fixing the problem correctly the first time is often the most cost-effective solution.

For this reason, it is often recommended to convert asphalt to concrete in dumpster areas, at least where truck wheels typically sit during service. Concrete handles heavy loads much better in these high-stress locations.

The same principle applies to other areas with frequent heavy traffic or tight turning movements. In these areas, additional asphalt depth or conversion to concrete can significantly improve longevity.

For this reason, it is often best to squeegee sealcoat near buildings instead of spraying it. While squeegeeing is typically more expensive and takes longer, it greatly reduces the risk of overspray and damage.

Asking contractors about this during the bidding process can save significant headaches later.

Sometimes a specific area of pavement collects standing water. Property owners often request that a contractor regrade a small patch to redirect the water. Unfortunately, this is not always possible.

True regrading typically requires work down to the subgrade level. In addition, the edges of the repair must tie into the surrounding pavement. Because of this, there is very little ability to adjust slope within a small repair area.

While improvements may sometimes be possible when asphalt is removed and replaced over larger sections of the lot, properties with persistent drainage issues often benefit from consulting a civil engineer to develop a long-term solution. An engineer can provide guidance on options such as adding storm structures, adjusting grading for proper sheet drainage, or redesigning drainage patterns. It is also important to remember that drainage solutions must be carefully designed. Water cannot simply be redirected off your property onto neighboring properties, and doing so can create additional issues and potential liability.

Over the years we have seen several different approaches:

• Rope and washers to outline stalls,
• Concrete wheel stops installed above grade,
• Flexible poles installed with rope between them, and
• Partially buried wheel stops painted for visibility.

One solution that has worked surprisingly well is striping directly on the gravel surface. While this is not typically recommended for high-traffic areas, storage parking stalls often experience very little movement. Vehicles such as boats, RVs, and cars may remain parked for months or even years at a time. Because traffic across the stall lines is minimal, the paint tends to last longer than expected.

Self-storage facilities also experience frequent move-ins and move-outs. If tenants encounter potholes, standing water, or trip hazards, the experience becomes frustrating and potentially unsafe.

Poor pavement conditions also increase liability exposure. A lawsuit from a trip-and-fall incident can cost far more than routine pavement maintenance.

Maintaining your parking lot improves safety, enhances brand perception, and helps retain tenants for years to come.

For facility managers responsible for regional or national portfolios, it can be extremely difficult to evaluate hundreds of properties and determine where pavement budgets should be prioritized. Too often, decisions are based on who complains the loudest or which site raises the biggest concern.

When a contractor like The Pavement Group can assess an entire portfolio, document pavement conditions with GPS-tracked photos, and assign PASER ratings to each property, owners gain clear visibility into the condition of their pavement and can develop a strategic plan for repairs and maintenance. This allows owners to prioritize properties with the greatest safety risks and the most urgent repair needs.

By allocating maintenance dollars strategically and focusing on the worst areas first, owners can build long-term maintenance plans that stretch budgets much further.

he self-storage landscape is becoming increasingly competitive, especially for smaller operators who struggle to match the marketing might of the REITs. But that doesn’t mean smaller operators can’t compete–and even beat–larger players. You can still win with strategic, low- or no-cost perks that many tenants find highly attractive. Here are five perks smaller operators can offer to outcompete the REITs.

This is a major incentive for tenants who not only save money on renting a moving truck but also avoid the hassle of picking up and returning it. Sure, you or your employees will need to drive the truck yourself, which takes some time, but a free moving truck with driver is a value-added service that can truly make you stand out and win business.

You can even offer the truck when they move out, provided they stay for a year or more, which can be a great way to encourage tenants to extend their stays at your facility.

With the average cross-town truck rental costing at least $50, this perk could easily save tenants $100 or more between their move-ins and move-outs. Plus, they’ll get to use your moving equipment for free, which often represents an extra rental cost.

Before you start advertising, be sure to check with your insurance company about any additional coverage you might need for transporting your tenants’ items. You’ll also need to have tenants drive their own vehicles, because you don’t want the liability associated with transporting them.

Ultimately, providing a free moving truck is a goodwill gesture that will likely earn longer-term tenants and enthusiastic word-of-mouth advertising. With this perk, you’re not selling the truck; you’re selling convenience.

Tenants often overlook locks when they’re moving in, and they don’t necessarily love the idea of buying them from facilities, especially if markups are through the roof. Providing locks can reduce friction by eliminating unexpected purchases at move-in.

Moreover, by providing high-quality locks from brands you know and trust, you’ll likely reduce emergency calls about things like jammed or broken locks. Thus, free locks aren’t just a great perk for tenants. They can also grant you peace of mind in knowing new, working, highly-secure locks are being used on every unit at your self-storage facility.

You can compete by guaranteeing rates for a full 12 months. Tenants will appreciate the transparency in knowing they won’t experience unexpected price hikes, as many people dislike surprise price increases more than higher upfront rental rates.

Your 12-month price guarantee not only simplifies comparison shopping, it can also show tenants you respect them. When they know exactly what to expect, they won’t feel bamboozled; they’ll also be more likely to refer their friends, family members, and colleagues and to rent space at your facility well beyond the initial 12 months.

Educating potential tenants is key. Show them the math. Your website, social media, and office are perfect places to display a side-by-side breakdown of total costs over one year, including anticipated price increases and hidden costs (see No. 4).

You can even do the math for your tenants on your website. Use a table to directly compare a local competitor’s rates to yours, including all fees and projected rate increases over a year, to show prospects why it makes more economic sense to choose your facility over the REITs.

This perk makes honesty a competitive advantage, and one many prospective tenants will respond to. Show tenants how much they can save because you don’t charge hidden fees, and you’ll appeal not only to their sense of frugality but also their appreciation for transparency.

Offering discounts to specific groups like these is more about showcasing your values than it is about pricing tactics. You’re showing your local community that you support veterans and military members, college students, and senior citizens, and that means something.

None of this is to say that competing against REITs isn’t challenging, but it does mean that you can leverage high-value perks to compete. Study your competition and do what the REITs can’t do or won’t do, and your self-storage facility will be well-positioned for success.

elf-storage demand is shaped by far more than square footage and unit mix. Climate patterns, population densities, age groups, and regional lifestyles all influence how facilities operate and what types of customers they serve.

When a portfolio spans multiple states, these differences become clear. Each region brings its own challenges and advantages, pushing operators to refine strategies, customize offerings, and stay flexible enough to meet varied customer needs.

Working across diverse markets reveals patterns that can help any operator strengthen performance. Whether the region is humid or dry, growing or stable, suburban or rural, understanding local conditions has a direct impact on occupancy, pricing, marketing, and day-to-day management. These lessons create a much stronger foundation for operators seeking more resilient, adaptable, and efficient storage portfolios.

Hot and Humid Regions
In warm, humid climates, customers often see climate control as essential rather than optional. High temperatures and moisture can negatively affect furniture, electronics, documents, photographs/film, and household goods. Demand for climate-controlled units is typically higher in these regions, and customers are willing to pay more for the protection. Operators who invest in reliable, efficient climate-control systems generally see stronger occupancy and fewer customer complaints.

Cold And Snow-Prone Regions
Facilities in colder regions face another set of challenges. Snow on roofs, fluctuating temperatures, freeze-thaw cycles, and icy drive aisles make winter operations more demanding. Key considerations include:

• seasonal maintenance scheduling,
• durable roofing and drainage systems,
• snow removal logistics and equipment,
• weather-resistant exterior materials, and
• extended gate hours to accommodate shorter daylight.

Operators must also communicate proactively during storms to reassure customers and maintain trust.

Dry Or Desert Markets
Dry, desert-like regions often see higher demand for outdoor parking, especially for RVs, trailers, and boats. These climates allow for more exterior storage options without the same moisture-related risks found elsewhere. Understanding how weather shapes certain customer habits ensures each facility offers relevant features rather than a uniform, less-effective set of amenities.

Suburban Markets
In suburban communities, customers typically have more belongings, larger homes, and more frequent life transitions related to family growth. Suburban renters often seek:

• 10-by-10, 10-by-15, and 10-by-20 drive-up units;
• RV, boat, and trailer parking; and
• long-term rentals tied to home renovations, relocations, or downsizing.

Customer service expectations tend to be moderate, with convenience and access ranking as top priorities.

Urban-Adjacent Areas
Markets near large cities attract a different customer base. Renters include apartment dwellers, students, military, and people in transitional housing situations. These customers often prioritize:

• smaller unit sizes like 5-by-5 and 5-by-10,
• strong digital tools and online rentals,
• short-term contracts, and
• extended access hours.

Operators in these regions may experience faster tenant turnover, requiring more frequent marketing and community engagement.

Rural Customers
In rural areas, customers often value affordability, simplicity, and long-term reliability. They may use storage to:

• house seasonal equipment,
• store recreational vehicles,
• hold tools or small machinery, or
• keep items related to farming or land use.

Because rural customers often expect to stay for years, operators benefit from lower turnover and reduced marketing cost. Rural markets may require more education around modern storage features or digital tools.

Hot Regions
Hotter markets often benefit from:

• a higher percentage of climate-controlled units,
• covered or shaded RV and boat parking,
• wide drive aisles for large recreational vehicles, and
• units designed to support long-term household storage.

Customer willingness to pay for climate control also means operators can introduce premium tiers without significant resistance.

Northern Markets
Cold-climate markets often value drive-up units more, especially when customers need quick access to tools, winter equipment, or vehicles. These renters may prefer:

• exterior drive-up units in multiple sizes,
• 24/7 access to navigate
• winter schedules,
• strong lighting and security, and
• units large enough to store ATVs, snowmobiles, or utility trailers.

Operators who expand drive-up options typically see stronger demand in colder regions.

Rural Markets
Rural customers frequently need:

• 10-by-20, 12-by-30, and larger contractor-style units;
• outdoor parking for trucks, trailers, or farm equipment; and
• simple, durable construction over aesthetic finishes.

These units attract long-term tenants such as independent tradespeople, small-business owners, and recreational enthusiasts.

Hot Markets
In warm climates, climate-controlled units often carry a wide pricing gap above non-climate-controlled options. Customers see the value clearly, especially when storing sensitive items. Operators may use tiered pricing to differentiate climate, interior, drive-up, and premium climate.

Regions with heavy tourism or high seasonal population shifts also support dynamic pricing models.

Cold Or Rural Markets
In colder and rural markets, customers often prioritize stability over premium features. Operators may see more consistent results with steady annual increases instead of frequent dynamic changes, bundled pricing for long-term renters, and promotions that highlight accessibility rather than aesthetics.
Understanding local tolerance for rate adjustments leads to more sustainable revenue planning.

Suburban Renters
These customers respond well to marketing that emphasizes:

• extra space during life transitions,
• easy drive-up access,
• secure storage for household goods, and
• long-term reliability.

Rural Renters
Rural renters respond to practical, straightforward messaging; rural marketing tends to perform better when it focuses on:

• affordability,
• equipment storage,
• vehicle parking, and
• long-term dependability.

Community connections and local partnerships also matter more in smaller towns.

Urban-Adjacent Renters
Renters near larger cities want digital convenience and often choose the facility that offers:

• instant online rentals,
• automated gate access,
• digital customer support, and
• easy unit sizing tools.

Modern, seamless online experiences are often more important than physical amenities.

Standardization Helps but Flexibility Wins
Core systems such as maintenance schedules, customer service protocols, and lease management benefit from consistency. However, flexibility must exist in unit mix, pricing, promotion timing, amenity investments, and staffing models.

Operators who tailor these elements to each market perform better across the board.

Weather-Driven Maintenance Planning Is Crucial
Hot regions require HVAC upkeep and pest control. Cold regions need snow removal, drainage management, and freeze protection. Coastal or humid regions demand moisture monitoring and corrosion-resistant materials. Facilities that anticipate seasonal demands avoid emergency repairs and ensure customer satisfaction.

Staffing Needs Vary by Market
Customer expectations differ with demographics. Some areas require heavy digital support, while others value in-person interaction. Rural markets may benefit from long-time local hires who build community trust, while urban-adjacent facilities often run efficiently with lean, tech-driven staffing models.

Successful operators do not rely on a single formula. Instead, they adapt, observe, and tailor each facility to the realities of its market.

The ability to scale across varied markets is not just a strategic advantage. It is quickly becoming a necessity in a storage landscape defined by rapid change, shifting populations, and evolving customer expectations.

ave you noticed when you do a search on Google that most results now feature what’s called the AI Overview (AIO) at the top? It’s a summary answer in response to the question or search query the user entered. Depending on the topic, relevant YouTube videos appear prominently in the AIOs. And since YouTube is the second-largest search engine next to its parent, Google, YouTube is a prime place to get great exposure when used strategically.

Unfortunately, many local businesses do not use YouTube effectively. You probably think that just recording a video and uploading it is enough, but it’s not. With a little extra effort, tweaking your YouTube strategy can make a significant difference in your results. These tips will help you increase views, subscribers, and conversions, which lead to sales.

Recently, I watched a webinar from Sterling Sky (www.sterlingsky.ca), an SEO agency that specializes in local search. It featured Jeremy Vest of Creator Unlock (www.creatorunlock.com). Here’s a summary of the two-hour webinar, plus additional tips. A QR code to the video is at the end.

Here’s how to optimize your channel branding and description:

• Under “Customize Channel,” then “Profile,” you can enter a full description explaining your business, who you help, and what types of videos will be or are included in the channel. You have 1,000 characters, so use them.
• Have an eye-catching banner (cover graphic) that depicts your brand, facility, service, agency, or location; why you are better; and how you can help. Cover dimensions are 2048-by-1152 pixels; there’s a 6 MB file size. Make sure it looks good on all devices (desktop, TV, tablet, and phone).
• Your brand’s logo icon and color scheme should be consistent throughout your website and other social media accounts.
• Don’t put text in your banner or logo that’s too small and unreadable.
• Add links to your website and other social media profiles.
• Create a “Channel Trailer.” This is a short, two- to three-minute commercial of your business or the purpose of your channel. Designate this video as the channel trailer under the “Channel Customize Channel” “Home Tab.”
• Create a “Handle” and “Custom URL” for branding.

• The hero of the video should be featured on the thumbnail. Spotlight what you are talking about. Brand recognition comes to play here. If you’re a facility, you want to build your company brand. However, for a realtor, advisor, or service provider, you want to build a personal brand.
• The colors you use in your thumbnail make a difference. I wrote an article about color psychology that was published in the July 2025 issue of Messenger. For instance, yellow, orange, and red are colors that attract attention. Red and orange also stir up a sense of urgency. Thus, you see it used in CTA buttons.
• Besides being eye-catching, the thumbnail should be enticing. Give them a reason to watch the video.
• Be intriguing. Don’t reveal everything in the thumbnail. In other words, you don’t need the whole title of the video in the thumbnail.
• Keep in mind that you’re competing with all the suggested videos that the algorithm shows the viewer on the side.
• All videos should have a thumbnail, including shorts, because thumbnails are a stop sign for people to read the title.

It’s very easy to create a YouTube thumbnail with the free online graphic tools. Dimensions for horizontal videos are 1280-by-720 pixels and need to be under 2 MB file size. For shorts it’s 1080 -by-1920 pixels (9:16 aspect ratio).

What about titles? You get 100 characters for a title on horizontal videos. Focus your main keywords in the first 50 to 60 characters for optimum visibility. Long titles will be truncated on search results and mobile devices. Put hot words in all caps; this applies to blog posts, too.

Here are some things to keep in mind about Shorts:

• Shorts are easier and faster to make than longer, horizontal videos.
• Include your own captions.
• Be impactful.
• Titles should be four to six words or 20 to 40 characters.

“Being good on YouTube isn’t good enough. You have to be effective.” —Jeremy Vest

Long, Horizontal Videos
People will sit and watch a longer, explainer video if they are learning something helpful. YouTube has more watch time on TVs than on smartphones.

• Descriptions are important because the AI search bots will grab the summaries and then feature the video if it matches the search query.
• Are hashtags still relevant? Yes, but in the descriptions only, not in the titles.
• YouTube will take the first three hashtags in the description and feature them under your title. Place hashtag-relevant keywords in your description. Furthermore, there is no limit to the number of hashtags you can have in a description.
• Don’t forget to add the relevant keyword tags (not hashtags) before you publish it. This section is below the description.

Repurpose your YouTube videos for social media. Upload videos under 15 minutes directly to LinkedIn. You can also put them at the top of articles and use the transcript as your text. Similarly, upload videos as Reels directly to Facebook or Instagram.

• Always put your location, especially in the description, hashtags, and keyword tags.
• Stick to your specialty. Keep business and personal separate.
• Become a master of your topic.
• Focus on who you help and why it matters.
• Feature any local community involvement where you participate as a business.

Jeremy Vest reiterated something that I say all the time regarding your target audience: “If you try to be everything to everyone, you’ll be nothing to no one.”

Interestingly enough, the one channel that stood out for me was Extra Space Storage (https://www.youtube.com/@extraspacestorage/). Being the largest operator of self-storage facilities, their videos are professionally done; most are short commercials. However, the most popular ones are a series of stories. People love stories! Tell stories! Make up stories! The trick here is to feature people who look like your target market(s).

Casual videos are OK for smaller facilities that may not have a budget for professional videos. Showcase storage tips, frequently asked questions (FAQs), and stories. Definitely show off any community service.

All in all, look at what your closest competitors are doing and create better videos more often than they do. If you need help with your video marketing strategy, visit my website and book a free Zoom call.

elf-storage website data will show how efficiently your website is converting local demand into actual rentals. Traffic alone does not pay the bills—occupancy does. The right website metrics show whether your site is acting like a high-performing leasing agent or simply a digital brochure. Because self-storage is a hyper-local, demand-driven business, your website data can quickly expose wasted marketing spend, broken customer experiences, and missed revenue opportunities. When tracked and understood, these metrics can give you a clear direction on what to fix, where to invest time or money, and how to grow occupancy rates without overspending.

• Total sessions and users – These metrics will tell you if demand is growing, shrinking, or flat. Users represent the number of unique people you are reaching, while sessions show how often they return or engage.
• Traffic sources – This tracks where users come from and helps you understand which channels customers actually use to find you, as well as which channels produce rentals and not just clicks. This data allows you to allocate both time and budget toward channels that deliver real ROI and result in actual rentals.
• Device split – Understanding how customers access your website is critical. Typically, 60 percent to 75 percent of facility traffic comes from mobile devices.
• New versus returning users – New users are in the discovery and first impression phase, while returning users are comparing options, evaluating pricing, and moving closer to a decision.
• Location of visitors by city and ZIP code – Storage is hyper-local. This means that distance kills conversions for self-storage. If traffic is coming from outside your one- to five-mile trade area, you are paying for non-renters and ranking for the wrong searches. These metrics help you drill down to the hyper-local level and make sure your marketing efforts align with real demand.

When tracked together, these metrics show the full picture of who is finding you, how they found you, and whether they are even capable of renting from you. When sessions increase, but conversions do not, it is a clear indicator of a website or customer experience problem.

• Online rentals and reservations – This shows how many customers complete a rental or reserve a unit directly on your website. When unit pages receive high traffic but rentals remain low, it often signals friction in the checkout process.
• Lead forms submitted – Not everyone rents immediately or wants human interaction. Lead form tracking ensures your website still captures value even when the customer is not ready to rent. These leads allow your team to follow up and assist with closing the rental.
• Click-to-call events – A large percentage of storage rentals still close over the phone. Mobile users may prefer calling rather than completing a full transaction on a small screen. These metrics track how often customers tap the phone number on a mobile device.
• Chat interactions – Live and AI chat help answer common questions related to unit size, availability, pricing, and more. When used correctly, chat reduces friction, supports conversions, and can lower labor costs by acting as an additional sales layer.

If you cannot quickly determine your cost per rental, also called cost per acquisition, you are optimizing your website for activity and not revenue. The advantage of self-storage being demand driven is access to high-intent audiences. When websites fail to convert, the issue is typically related to user experience or pricing clarity rather than a lack of demand.

• Website conversion rates – 3 percent to 8 percent
• Mobile traffic – 60 to 75 percent
• Online rentals share – 30 percent to 60 percent
• Page load time – 3 seconds or less

Website data is about marketing, operational efficiency, smooth customer experiences, and revenue growth. When tracked and implemented correctly, these metrics allow operators to grow occupancy faster, reduce marketing spend, and turn their website into a revenue-generating machine.

aising existing tenant rents is one of the most powerful and most misunderstood pricing levers in self-storage. Done correctly, it compounds revenue year after year without sacrificing occupancy. When done poorly it triggers churn, negative reviews, and even regulatory scrutiny.The self-storage industry is learning this lesson the hard way. A landmark lawsuit in New York City, restrictive new legislation in California, and a rising tide of consumer complaints have put in-place rent increases squarely in the crosshairs of regulatory agencies.

The core problem, however, isn’t rent increases themselves. It’s the systematic reliance on a flawed shortcut: use artificially low move-in rates to attract customers, fill units quickly, and “make it up later” through aggressive in-place increases. This isn’t true revenue management; it is occupancy maximization disguised as pricing strategy.

Effective revenue management treats pricing as a true business discipline—one grounded in data, segmentation, behavioral economics, and a genuine understanding of customer value.

Extra Space has publicly stated it disagrees with the claims and is reviewing the matter. Regardless of the legal outcome, the implications are clear: Extreme rate volatility for a customer invites regulatory attention. In a digital-first environment, reputation is a downstream revenue driver that many operators dangerously underestimate. A single viral complaint or a “predatory” label from a regulator can depress move-ins long before a case reaches resolution.

We are seeing a shift from “buyer beware” to “operator beware.” New York’s Local Law 171 now requires self-storage operators to obtain licenses. California’s SB 709, passed in 2025, requires operators to disclose in every rental agreement whether the rate is promotional, whether it is subject to change, and the maximum rate that could be charged in the first 12 months. High-density urban markets with active consumer advocacy communities are natural candidates for similar legislation.

Regulators are not targeting discounts; they are targeting opacity. There is a clear distinction between strategic discounting and a “bait-and-switch” scheme. When a discount is used as a transparent bridge to a standard rate, it is reasonable. When it is used to lock in a customer before an unannounced spike, it becomes a liability.

Regulators are also not targeting pricing science or revenue management. They are imposing boundary conditions on pricing behavior. And as any revenue management practitioner knows, tighter constraints don’t eliminate the need for optimization; they increase the need for it. When in-place increases carry greater legal and reputational risk, getting move-in pricing right the first time becomes even more valuable. This requires more pricing science, not less.

• Anchoring Effect – Customers anchor on the initial move-in rate as the “fair price.” Future increases are judged relative to that anchor, not relative to market value.
• Loss Aversion – A rent increase is felt twice as strongly as an equivalent discount.
• Fairness Heuristics – Consumers accept price increases when they perceive them as justified. They react strongly when they perceive manipulation.

A customer who moves in at $60 and goes to $100 at month four feels exploited. A customer who moves in at $85 and goes to $100 at month six feels adjusted. The math may be similar. The psychology is entirely different.

Other industries faced regulatory overhaul after teaser pricing eroded trust and destabilized their markets. Subprime mortgages promoted low teaser rates that reset sharply higher, loan volume surged short-term, then default shocks and regulatory overhaul reshaped the industry. The 2009 CARD Act imposed strict disclosure requirements on credit cards after opaque repricing mechanics became the norm. Telecom and cable providers trained customers to distrust advertised rates and negotiate aggressively at renewal. Pricing wars rarely produce winners.

This is not about charging more; it is about charging optimally.

Profitable pricing starts with differentiating units by the value drivers customers care about. Sophisticated street rate optimization evaluates unit attributes, inquiries, reservations, incentives, occupancy levels, vacant days, length-of-stay distribution, in-place rents, competitive rents, price and promotion sensitivity, and move-in and move-out forecasts. The goal is not maximum occupancy. The goal is maximum sustained revenue.

Operators who invest in this kind of pricing science don’t need to lead with a loss to fill units. And because their customers moved in at appropriate prices, in-place increases don’t need to be aggressive. They can be moderate, transparent, and framed as a natural continuation of a fair customer relationship.

Timing rent increases using length-of-stay distributions and leveraging rental attributes to identify where adjustments are economically justified turns this into a genuine risk management exercise: Capture reasonable rent growth while minimizing the probability of move-outs. The goal is the right increase, to the right customer, at the right time.

Transparency is not simply a compliance requirement; it is a revenue protection strategy. Clear, proactive communication reduces perceived unfairness, complaint intensity, negative reviews, and churn. Customers who understand and value what they are paying for respond far more constructively to price changes than those who feel surprised or misled. When trust is established, rational increases are far more likely to be accepted.

Operators who get this right will find that rent increases don’t need to be aggressive to be effective. They need to be smart. And in a market where lawmakers are watching and every bad review is permanent, smart is also the safest strategy of all.

he self-storage industry has always understood its role in life’s transitions. We’re there when someone moves, downsizes, loses a spouse, or needs temporary space during renovation. Our marketing speaks to mobility, to change, and to the next chapter.

But what happens when the next chapter doesn’t come?

Storable’s 2026 Moving Forecast, a nationally representative survey of 1,000 U.S. adults, reveals something operators need to understand: For a growing segment of Americans, storage isn’t about transition anymore. It’s about being stuck and finding ways to cope with homes that no longer fit their lives but that they can’t afford to leave.

Sixteen percent of Americans have already rented self-storage specifically because they can’t move to a home that fits their needs. Another 25 percent are considering it. That’s 42 percent of Americans who have either turned to storage or are thinking about it not because they’re moving but because they’re not.

This is a fundamentally different customer. The question is: What does that actually mean for how we operate?

Among homeowners with mortgages, 73 percent say they would consider moving if they could transfer their current rate to a new home. But they can’t, so they stay. And staying comes with costs that extend far beyond square footage.

Our data shows that 33 percent of Americans have stayed in a relationship or living situation longer than they wanted because they couldn’t afford to move out. More than half of working Americans (56 percent) have either already turned down a job requiring relocation or say they would. Among homeowners, 22 percent would delay retirement by five or more years to keep their current mortgage rate. Six percent would skip or delay medical care.

This is someone whose life has outgrown their space but who has no viable path to something better. Maybe they’ve had another child and need a bedroom. Maybe they’re working from home now and the dining room has become an office. Maybe aging parents moved in and the basement is now living space instead of storage.

This is the housing hostage customer, and they don’t behave like traditional storage renters.

Thirty-two percent have renovated or remodeled their current homes. Twenty-two percent have converted rooms to different uses, such as turning garages into offices, dining rooms into bedrooms, and spare rooms into workout spaces. They’re adapting to make an ill-fitting house function for a life it wasn’t designed to support. And increasingly, self-storage is part of that adaptation.

For decades, the self-storage industry has understood its customer as someone in transition. We market to movers. We optimize for short-term rentals. We design our pricing around six- to 12-month customer lifecycles. We talk about being a “temporary solution.”

But the housing hostage customer isn’t temporary. They’re not storing holiday decorations while they wait to close on a bigger house. They’re storing the overflow from a life that doesn’t fit inside the walls they can’t afford to leave.

This is storage as a permanent workaround. And it changes everything about how we should think about this segment.

Marketing
Stop selling transition. Start selling adaptation.

Traditional storage marketing speaks to people in motion: “We’re here for your move.” “Store with us during life’s changes.” “Temporary space when you need it most.”

The housing hostage customer isn’t moving. They’ve accepted that. What they need is a message that speaks to making a difficult situation more livable. “Reclaim your home office.” “Make room for the family you have now.” “Turn your spare bedroom back into a bedroom.”

The need is immediate and ongoing: Make the current house work better.

Customer Lifetime Value
These renters might stay longer than you think. If your average customer lifecycle is eight to 12 months because they’re storing during a transition, what does your model look like when a customer isn’t transitioning at all?

The housing hostage customer could be a two- or three-year renter—possibly longer. They’re not waiting for a move-out date. They’re waiting for mortgage rates to drop, which may or may not happen on a timeline that aligns with their needs.

This matters for how you think about pricing, retention, and long-term revenue. A customer who stays twice as long but demands fewer operational touches (no moving trucks coming and going, no constant turnover) might actually be more profitable than the traditional mover, even at lower monthly rates.

Service Model
Do customers in your area need what you’re currently offering?

Traditional storage customers need access during a compressed window, such as the few weeks when they’re packing, moving, and unpacking. The housing hostage customer’s access needs might look different. Are they retrieving seasonal items a few times a year? Do they need climate control because this is long term, not temporary? Are they storing higher-value items because this isn’t just overflow from a move, it’s the belongings they had to choose between when space ran out?

Understanding these operational differences helps you design better offerings, price more strategically, and market more effectively to a segment that doesn’t fit traditional storage assumptions.

When you can segment your customer base this way, you stop making decisions based on industry averages and start making them based on your actual customer mix. You’ll see which segments stay longer, which prefer climate control, which respond to different marketing messages. By leveraging data-driven insights, you can make more accurate forecasts, identify new opportunities, and tailor your pricing and service delivery to match how different customers actually use storage.

The housing freeze has created a new customer segment. The self-storage operators who can see them, segment them, and serve them appropriately will build more resilient businesses—both now, while the market is frozen, and later, when it thaws. For decades, we’ve been the industry of life’s transitions. Now we’re also the industry that helps people adapt when transition isn’t an option.

n 1990, attorney Scott Zucker gave a client an answer most in the profession try to avoid: “I have no idea.”

The client, a new self-storage developer, wanted to know how to operate the facility and what legal rules applied. Although he didn’t know, Zucker wasn’t about to let him down. “I’ll find out for you,” he quickly added.

He went digging. What he found pulled him into an industry that was still taking shape, and one that would eventually shape his career, turning him into one of self-storage’s most prominent legal voices.

Now a partner at Atlanta, Ga.-based Weissmann Zucker Euster + Oblinger, P.C., he started as an associate at a mid-size firm after graduating from the George Washington University Law School. He was quickly recognized for his abilities, and after years of learning under seasoned mentors, rose to partner. “I was primarily a construction lawyer, handling projects that ranged from manufacturing facilities to power plants,” says Zucker. It was solid work, but for him, it lacked the spark of something new. “The clients were already established, and the industries already had their lawyers.”

Self-storage, however, was different. So, when that client came calling in 1990, Zucker was intrigued. He was also surprised to find laws governing how self-storage facilities operated. “It was such a nascent industry, I couldn’t believe our legislature bothered to create laws for it back then, but they did.”

The more he pored over self-storage law, the more he realized the sector was still in need of framing. Few attorneys were focusing on it, and fewer were writing or speaking about it. He wound up writing an article outlining the legal considerations unique to self-storage. It was published in a national trade magazine, and it didn’t go unnoticed. “I was invited to speak at a storage conference in Chicago,” recalls Zucker. “I felt like such a big shot as a young associate letting the firm know that I got the invitation.”

There were about 400 people in attendance, but he could feel the growth momentum from the people he met. “I could tell something was happening. There was something in the air. Of course, today there’s upwards of 4,000 people at these conferences with vendors and operators.”

Those insightful words would guide him as he built his self-storage relationships, focusing not just on law but on people.

Today, of course, the self-storage industry is much larger than many of the naysayers ever expected it to be. Zucker counts off a few big names. “Put McDonald’s, Wendy’s and Taco Bell together and they still equal fewer locations than self-storage facilities in this country,” he says. “Once you start looking, you see self-storage facilities everywhere. Getting into the business back then was a gamble, but it paid off. The self-storage industry grew from a relatively fledgling real estate sector to one of the most successful real estate sectors right now.”

One defining moment for self-storage was COVID-19. While he recognizes the tragedy of the pandemic, when it comes to the benefits for the self-storage industry, there is no denying the data. “The occupancy levels for self-storage during that time skyrocketed.”

Zucker recalls conversations about self-storage oversupply in 2019 and early 2020, and how that discussion was curbed just two months into the pandemic. “People had to stay at home, make room for their offices, their families, their gear. It made a lot of folks understand that they can put their stuff somewhere else other than a spare room, garage, or basement. That realization hasn’t waned.”

This patchwork of regulations, and the complexity that comes with them, has helped expand Zucker’s reach well beyond Georgia. “We’re dealing with state legislative issues as well as federal regulations that affect operations,” he says. “That’s why I speak globally on issues that impact the industry from a legal perspective.” That’s an understatement; Zucker has now been a speaker at over 500 conferences, roundtables, webinars, podcasts, and presentations on various self-storage issues.

As his clients grew, so did the need for guidance across multiple jurisdictions. But Zucker is the first to acknowledge that he doesn’t know everything. Instead, he knows where to find the answers. “If an issue comes up, I know who to call and where to get the information my clients need.”

That’s because, over the past three decades, Zucker assembled a national network of attorneys across the country with whom he collaborates and refers matters. “One lesson I learned early is to form relationships with lawyers in other states,” says Zucker. “If a client is growing, they’re going to cross state lines. You need trusted resources who understand those local laws.”

The arrangement requires trust and mutual respect. “You have to be willing to work together for the same client and not worry about someone stealing business,” Zucker says. “It’s a real team effort to build a national practice. I have also been so lucky to work with some amazing lawyers and paralegals along the way. My Weissmann/Zucker team of Ashley Oblinger, Kitty Canupp, and Traci Pierce has been a foundation of incredible support for my practice and how we serve our clients.”

Working with the Self Storage Association (SSA), Zucker, along with former SSA General Counsel Carlos Kaslow, also helped develop a legal hotline that provides operators with quick information on statutes, compliance questions, and best practices. Rather than searching online for answers, SSA members can access industry-specific resources from professionals who understand the regulatory landscape.

He and Kaslow also supported the creation of standardized forms and compliance documents, including tenant notices, lease language, and lien foreclosure materials, bringing essential tools together in one place for operators. One particularly unique outgrowth involved ADA compliance. As accessibility requirements evolved, Zucker assisted in developing retrofit solutions to help facilities meet federal standards.

In 2015, Zucker broadened the scope of his work further, launching a mediation service as an alternative for businesses seeking resolution rather than escalation. The philosophy mirrors the same client-first approach that built his legal practice: solve problems, preserve relationships, and keep businesses moving forward. “After years of litigation in landlord-tenant and vendor disputes, I’d begun to question whether courtroom battles were always the best path,” he says. “Litigation is expensive, time-consuming, and inefficient, while mediation allows people to participate in the resolution and often reach a solution faster and at lower cost.”

Will Zucker extend his mediation techniques beyond Georgia? “You don’t need a bar license to be a mediator, so effectively I could mediate around the country, but my focus for the mediation practice is to be closer to home. I still travel a lot as it is, and I’ve got a grandchild now. So, the closer I can be to home to manage my work, the better.”

When asked what the biggest legal mistake owners make most often these days, he’s quick to answer. “Lack of full communication with tenants. It starts with the misstep of not getting their tenants to sign their leases and continues when there are problems at the facility. It is really important for operators to maintain transparency of incidents happening at their facility, communicating those issues to their tenants and acting responsibly when they happen.”

Looking ahead, what should operators prepare for in the next few years? More laws, says Zucker. “What we are seeing now is a backlash against landlords and rental businesses in general,” he explains. “There is pressure about transparency of prices and how rates are adjusted. We are seeing legislation requiring significant disclosures to rental customers to avoid any risk of deceptive practices.”

Zucker says owners and operators need to be prepared to follow any new laws, including potential business licensing, and incorporate these requirements into their business practices. Otherwise, they risk class action lawsuits or governmental enforcement actions. “Self-storage has always been a regulated industry and structured to follow their state laws about facility operations,” he says. “But now those same operators need to watch and follow federal laws that might apply to their businesses and even local municipal laws that may impact how operators conduct their business going forward.”

“I began writing down my values, stories, and life lessons, organizing them into personal reflections,” he says. “First it was 40 things about turning 40, then 50 things about turning 50, and more recently 60 things about turning 60. The writings are about marriage, faith, courage, integrity, and the everyday philosophies that shape a life. I also wrote about fun topics like baseball, hiking, painting, and golf—the hobbies I enjoy.”

“Our legal culture pushes billable hours and constant work, which is important, but there’s more to life than that. You have to find the balance.” Zucker’s wife once joked that if he didn’t find that balance, his tombstone might read: Here lies a self-storage lawyer. He laughs, then pauses. “I’m proud of that title, but husband, father, grandfather, and friend are the ones that really count.”

While he has authored more than 300 published articles on legal topics and two authoritative self-storage law volumes, in 2005 Zucker began arriving at the office early to focus on writing fiction. Those early-morning chapters eventually became novels, including the legal thriller “Chain of Custody,” courtroom drama “Rally on Two,” and “Battle for Life,” a historical novel inspired by his father’s World War II service.

Each book took five or six years to complete. “I had to keep my day job,” he says with a laugh. “You write a chapter at a time, and eventually you have a book. I always tell people: Don’t sit down and say, ‘I’m going to write a book.’ The blank page can be insurmountable. Write a chapter at a time. Eventually those small pieces become something bigger.”

That same steady approach continues to shape his professional work. Zucker is preparing to release a new legal compilation published by Modern Storage Media. This new “journal” of self-storage law is designed to help operators navigate an increasingly complex regulatory landscape. “It’s the most comprehensive edition of self-storage law yet, so make space on your bookshelf,” says Zucker. “Or your desktop, it’ll be available digitally too,” he adds with a smile.

he thought of an ADA-related lawsuit can keep self-storage owners and developers up at night. But achieving compliance isn’t mysterious, impossible, or prohibitively expensive. When addressed early with the right professionals, it becomes design-driven, manageable, and often surprisingly affordable. To ensure a facility follows an ADA blueprint, planning must begin early whether the project is a new build, an expansion, or a conversion.

Although ADA standards are usually vetted during building plan check, mistakes can occur earlier in the process that severely impact project timing and cost. For example, Meinecke has seen project teams fail to account for access to the right-of-way (ROW) very late in the game. “This cut into the building’s square footage because the drive aisles were not wide enough to accommodate access while maintaining fire apparatus clearance,” he says. “The team was ultimately forced to add unplanned ROW access and spend money to do so.”

Not all states take the same approach to ADA compliance. “Texas has a really good approach to addressing accessibility,” says Jeff Dallenbach, founder and managing partner of Texas-based DALLENBACH-COLE. “Upon completion of construction documents, the project plan must be registered with the state and submitted for permitting. Then, the firm hires a third-party accessibility company to review the documents and flag anything that needs clarification or correction.”

While this may just feel like an extra step in an already long process, Dallenbach believes it’s valuable. “At that point the project is still being bid and permitted, so you can make modifications if necessary and get ahead of any potential issues.”

As construction wraps up, the accessibility company returns to confirm the build was completed as planned and issues a letter of acceptance. “Texas is rather groundbreaking in this regard,” says Dallenbach. “Some people don’t like dealing with it, but it helps to have an outside set of eyes addressing accessibility needs before it’s too late.”

While some builds are straightforward, others are constructed on unique or challenging sites. “Sites with significant topography present their own design challenges, not only with unit distribution but also parking and pedestrian circulation,” says Meinecke. “Regardless of site difficulty, ADA needs to be considered up front to prevent costly changes later.”

Expansion projects must also be viewed through an ADA lens. “Just because your initial building is compliant doesn’t mean additions don’t have to be,” says Dallenbach. “A percentage of units must be accessible. If you add 100 units, you need to add more accessible ones, so the percentage remains the same. You may also need additional accessible parking and other accommodations.”

If a client anticipates future expansion, particularly for a phased project, being forward thinking is essential. “You may plan for ADA accessible units in each phase,” Meinecke says, “or if you want to keep them all in the same proximity, include extra ones in the initial build so that in later phases you’re already covered percentage-wise.”

Dallenbach notes a silver lining when it comes to ADA compliance in self-storage. “Other types of builds can be far more complex,” he says. “With self-storage, you plan for parking, entrances, an office, bathrooms, and storage units. It’s not like designing a hospital with countless room types to consider.”

Contractors rely on those plans for details ranging from how a rain lip (or rain key) is formed at the unit threshold and the number and design of accessible units, to broader elements such as entry alcoves, man doors, and areas of refuge to ensure safe access and egress. “Some features are inherent in self-storage,” Guerin adds. “There are hallway width requirements for ADA, but self-storage hallways typically meet them by default. Customers need to maneuver large items like furniture, so the space naturally accommodates someone using a wheelchair.”

In smaller projects or rural expansions, an architect may not be required. “In these situations, builders often exclude ADA compliance from the base bid while recommending compliant construction practices,” says Guerin. “For example, a rain lip should slope gradually over 18 inches or measure less than one-half inch. Older designs used lips as high as one and a half inches, which can create barriers for wheelchair users.”

Technology can also support accessibility goals. Roc Hughes, vice president of self-storage sales for Janus International, says that when the company launched its original Nokē products and app, it made sure they were ADA compliant. “The Nokē platform allows users to access units via smartphone or fob, reducing the need for physical keys, codes, or manual handling that may be difficult for some people,” says Hughes. “Customers can also gain access at entry points using Nokē Pad and Nokē Screen. There’s also Nokē Elevate, our automated doors which provide easy accessibility for wheelchair users and others with physical impairments.”

In addition, Janus’ doors have been designed with compliant tensioning (the company’s 650 and 750 roll-ups require a maximum of just five pounds of continuous force to open and close fully). “These doors are so easy to open and close,” Hughes says. “They require less force than many other roll-up doors and check all the boxes when it comes to the ADA.”

When a developer brings Janus on board, Hughes says their team will guide facility owners on the best way to distribute accessible units across various sizes and classes. For facilities with 200 or fewer units, that means five percent must be ADA accessible; for those with over 200 units, you need 10 accessible ones plus an additional two percent. And while these percentages are required, the units don’t have to be rented exclusively to people with disabilities; for example, if you only have one 10-by-10 left and a non-disabled person wants to rent it, the law won’t stop you from earning that revenue. “ADA accessible units should be the last to rent,” says Scott Zucker, partner at Weissmann Zucker Euster + Oblinger, P.C. “Try to hold them in inventory, if possible, but if you have an opportunity to rent it to someone else, you can.”

The best thing a developer planning a conversion can do is have a conversation with their local inspector beforehand. Anderson says they may be willing to accommodate or make special concessions. “If the developer has worked out something with the inspector that deviates from the norm, that’s what we’ll do. We don’t do regulation interpretation; we follow direction.”

Trac-Rite will bring up ADA compliance, however, if the client does not during a pre-production conversation. “Honestly, outside of the rare occasions, the cost to be compliant is a low dollar amount, so it’s generally not an issue for most clients,” Anderson says.

Of course, motorized doors cost more and require wiring, something that some operators don’t want to pay for or deal with. But swing doors in the state must be as wide as the roll-up door that would have been used, which isn’t always feasible for large units. “A typical swing door is three feet. So, for one project with eight-foot roll-up doors, we had to build double swing doors and extend them to four feet each to meet the code’s requirement. Because of course no one wants, or has space for, an eight-foot swing door.”

For that particular project, Anderson says they ended up building the ADA units on the corners of the building, so they could install the swing doors on one side and a roll-up door on the other. “This kept the facility compliant, but also made the unit suited to non-disabled people as well, because they typically don’t want swing doors.”

ADA regulations may also not apply to a conversion if it’s not “readily achievable,” meaning compliance would be excessively expensive or difficult. “Common readily achievable improvements include installing ramps where stairs are the only access, adding curb cuts, widening doorways, improving door hardware, designating accessible parking, repositioning furniture to create clear paths of travel, and lowering controls such as light switches and keypads,” says Zucker. “While not every modification is feasible in every setting, even partial improvements that enhance accessibility are encouraged.”

Some of these improvements can be accomplished using ADA retrofit kits designed to improve accessibility at individual units, many of which are offered by manufacturers across the self-storage industry. These kits may include features such as accessible door pulls, rope assist systems, braille identification plaques, and threshold ramps that reduce barriers and improve usability.

Carlos Kaslow, partner with the Self-Storage Legal Network, does make it clear, however, that this kind of flexibility rarely applies to newer buildings (structures built after accessibility laws took effect). “These operators cannot rely on impracticality arguments simply due to cost,” he says. “Typically, this argument will only hold water when you’re converting older structures. A century-old building, for example, may have upper floors accessible only by stairs, and installing an elevator could be deemed cost-prohibitive, so full accessibility may not be required.”

“If violations are confirmed, sometimes the most effective strategy is rapid remediation and prompt settlement,” says Kaslow. “Large operators often begin repairs immediately. In some cases, courts have considered prompt corrective action sufficient compliance, reducing potential attorney fees and weakening plaintiffs’ claims.”

A more recent phenomenon that can be a headache for self-storage owners is “drive-by lawsuits,” in which an individual drives around looking for potential ADA violations. If they believe they’ve spotted one, they’ll send a “tester” onto the property—tape measure, level, and camera in hand—to confirm. The goal of these opportunists is to squeeze money from small business owners who cannot afford an attorney or are afraid of repercussions. “If there are violations, they are very difficult to defend,” says Zucker. “So, most business owners end up settling the lawsuits, typically for what is claimed as the plaintiff’s attorneys’ fees.”

Adds Zucker, “Accessibility enforcement varies by region and is influenced by litigation trends and advocacy efforts. Ultimately, designing for accessibility from the outset reduces risk, improves usability, and protects operators from costly disputes.”

However, this slightly positive outlook for 2026 demand and occupancy is underpinned by the assumption that pent-up home-buying activity will begin to return. If home sales fail to meaningfully materialize in 2026, this outlook will likely prove to be too optimistic. From an investment standpoint, underwriting assumptions around occupancy and rent growth in 2026 should reflect this cautiously positive outlook. Deals predicting a rapid rebound in rent growth or occupancy in 2026 are vulnerable to disappointment, particularly as market-level pricing is expected to vary widely.

For example, markets with elevated new supply, particularly in parts of the Sun Belt, have been slower to rebound and even continue to struggle with negative move-in rate growth. By contrast, supply-constrained coastal markets with high barriers to entry have already demonstrated a positive turn in move-in rate and overall revenue growth. An analysis of Public Storage’s third-quarter earnings supports this thesis, as the REIT’s highest-performing markets by same-store revenue growth consisted primarily of coastal markets (i.e., Tampa-St. Petersburg, San Diego, D.C. Metro, San Francisco, and Seattle) with mostly moderate supply growth expectations over the near term. Conversely, Public Storage’s lowest-performing markets consisted primarily of Sun Belt markets (i.e., Atlanta, Charlotte, Phoenix, and Orlando).

Green Street expects supply-constrained coastal markets to outperform Sun Belt and Midwest markets in 2026 and beyond, recommending investors overweight Los Angeles and New York markets and underweight Jacksonville. However, targeting these markets alone won’t guarantee outperformance. Operators looking to invest in a given market will need to have a good grasp of the size and depth of the supply pipeline within their targeted market, and more specifically at the submarket level. New entrants within a market without the backing of an experienced operating platform or a firm understanding of the competitive landscape will be more at risk of investing in an oversupplied corridor, resulting in prolonged pressure on net operating income until demand catches up with recent development.

Since then, large portfolio trades have been limited despite strong, continued institutional investor interest in the sector. This limited deal flow has resulted in minimal price discovery for self-storage as bid-ask spreads remain wide. However, nominal cap rates have expanded significantly since the 2022 peak, as current sector cap rates sit at approximately 5.4 percent, approximately 30 bps above 2019 levels. Investors continue to view self-storage as a defensive asset class with attractive cash flow characteristics, particularly as pension funds, private equity, and other institutional capital seek to diversify away from underperforming traditional property types such as office.

Transaction activity in 2026 is likely to remain below peak levels, constrained by elevated borrowing costs and persistent bid-ask spreads. Sellers anchored to prior valuations may struggle to transact, while buyers are underwriting to more conservative exit assumptions. Over time, this tension should ease as pricing expectations reset, but today self-storage appears slightly expensive relative to other property types. Green Street’s current self-storage sector level return expectations are approximately 7.0 percent, which sits approximately 40 bps below the U.S. weighted average for all real estate sectors. Operators looking to enter the sector in 2026 should be aware that they may be paying a premium for self-storage, which is forecasted to deliver below-average risk-adjusted returns relative to other property sectors.

For investors still looking to invest in the sector, success will likely depend on macro trends, such as the thawing home sales market, and on executing well at the asset and market level. Green Street currently recommends overweighting Los Angeles and New York, as coastal markets are expected to outperform over the near term. Sun Belt markets are expected to lag as they continue to work through large development pipelines, highlighted by Green Street’s underweight on the Jacksonville market. For stakeholders willing to adjust expectations, sharpen underwriting, and focus on market fundamentals and supply pipelines, the coming year offers a clearer and more optimistic path forward. The next phase of self-storage growth is unlikely to be explosive, but it may still prove just as durable as years past.

elf-storage adaptive reuse has gained significant popularity as an effective way for developers to add new inventory. This approach rose alongside the sector’s rapid growth, as self-storage expanded beyond its traditional use encapsulated by the four Ds. Homes have been trending smaller, and storage units have gradually become an extension of the home, supporting items that no longer fit into living spaces.

While demand has continued to rise, limited land availability and restrictive zoning laws are among the key hurdles preventing ground-up construction from keeping pace. As a result, developers have increasingly turned to adaptive reuse as a viable alternative, particularly in markets where vacant industrial buildings, retail stores, and other property types offer a clear path to adding new storage space through conversions.

See Top Building Types Converted into Self-Storage chart.

See How Self-Storage Conversion Deliveries Have Evolved by Decade chart.

See Under-Construction Conversions and Key Metrics Across U.S. Cities and U.S. Markets with the Most Self-Storage Conversion Space tables.

Population growth continues to support demand, with Irving’s population rising nearly 7 percent over the past five years. In this environment, conversions offer a faster and more flexible way to add supply. Nearly all the city’s conversion pipeline comes from retail properties, which account for about 95 percent of projects, largely driven by local store closures that created adaptive reuse opportunities.

Los Angeles, Calif., is another leading market for conversion projects under construction. With only 2.1 square feet of self-storage per capita, the city remains severely undersupplied, making the addition of 226,000 square feet of storage space a meaningful boost. This volume represents almost 60 percent of all storage space currently under construction in Los Angeles.

Overall, the city has delivered approximately 1.4 million square feet of self-storage through conversions, most of which originated from office buildings, followed by industrial properties. The prevalence of adaptive reuse has also helped create a more renter-friendly environment, with average street rates in LA at converted facilities reaching $221 per month—about 7 percent lower than rates at purpose-built properties.

Fairfield, Ala., is another strong performer, with more than 200,000 square feet of conversion space expected to come online, accounting for the city’s entire under-construction inventory. Fairfield currently offers just 2.2 square feet of self-storage per capita, making conversions an efficient solution for expanding its limited supply. The city already has close to 114,000 square feet of conversion inventory, all sourced from former retail properties following closures such as Walgreens, Francesca’s, and others.

Conversions offer a practical solution for adding inventory in these markets, where land constraints and zoning regulations often complicate ground-up development. Cranston, R.I., stands out as the only East Coast city with more than 200,000 square feet of self-storage under construction through adaptive reuse—a figure that also represents its entire development pipeline. This new supply will help offset a limited existing inventory of just 1.2 square feet per capita. Converted facilities in Cranston also offer lower costs, with average monthly rents of $119, roughly 26 percent below those of ground-up properties.

Newport News, Va., is set to add close to 165,000 square feet of storage space, accounting for more than two-thirds of the city’s under-construction inventory. With more than 6 square feet per capita, Newport News has the highest inventory relative to population among high-performing East Coast cities. Demand remains supported by nearby military installations, which continue to drive development activity.

In New York state, Albany and Buffalo are also contending with inventories below 4 square feet per capita, sustaining ongoing development. Albany is adding nearly 129,000 square feet of storage through conversions, while Buffalo is close behind with approximately 119,000 square feet. In both cities, industrial properties dominate conversion projects. All of Albany’s existing adaptive reuse inventory is located within opportunity zones, underscoring a focus on urban revitalization, while about 60 percent of Buffalo’s conversions are similarly situated.

See Where Is New Converted Self-Storage Space Concentrated map.

Oak Park and Westland, neighboring suburbs in the Detroit metro area, are also seeing notable conversion activity. Oak Park has more than 81,000 square feet of self-storage under construction, all originating from office buildings. Westland is adding close to 70,000 square feet of converted space, sourced entirely from former retail properties following multiple closures, including the Westland Center Mall.

Adaptive reuse has established itself as a viable way to add new inventory, especially in markets where demand is high and traditional development faces numerous hurdles. Across the Sun Belt, East Coast, and Midwest, conversions are helping cities respond to sustained demand by unlocking underutilized retail, office, and industrial buildings and bringing new inventory online more efficiently, remaining a pivotal inventory growth pathway in the sector.

elf-storage has become one of the most resilient, profitable, and attractive real estate asset classes over the past several decades. Yet, despite its track record, it is not the right business for everyone. In fact, many people who explore self-storage development ultimately decide it is not a fit, and for good reason.

Below are seven common reasons individuals choose not to pursue self-storage development, along with context that helps clarify when those concerns are valid and when they may be overcome.

Self-storage ownership tends to attract people who value long-term stability and predictable returns, but even then, many owners choose to hire professional management or guidance to help oversee operations.

During the development and lease-up phase, self-storage requires focused involvement, particularly around finding land, designs, financing, construction oversight, and early operations. While systems, partners, or third-party management can reduce the workload, they do not eliminate the need for owner involvement. Those unwilling to invest time upfront are unlikely to succeed. Once you are open, full, and have a detailed system, you typically have earned absentee ownership and have earned a four-hour work week.

Skepticism is healthy, but assumptions without data are risky. Successful developers rely on market studies and site analysis rather than general impressions. For those unwilling to validate demand at a micro-market level, self-storage development may feel too uncertain.

Fear itself is not the issue; unmanaged fear is. Education, planning, and committing to consistent execution significantly reduce risk. However, if fear prevents action altogether, development projects of any kind will remain out of reach.

That said, many developments are structured with partners to spread both financial and time commitments. Capital constraints alone do not always prevent entry, but an unwillingness to explore creative structures often does.

The risk increases significantly when someone attempts to navigate development alone. Successful projects are almost always supported by a strong team of engineers, architects, contractors, lenders, attorneys, and experienced operators. Those unwilling to build or rely on such a team often perceive the risk as too high.

This process takes time and persistence, which discourages many would-be developers before they begin. Others choose to work with specialists who identify and entitle land. While this increases upfront cost, it can significantly reduce uncertainty and development timelines.

estled in the Blue Ridge foothills along Lake Lanier is Gainesville, Ga., a city HGTV recently named one of America’s best up-and-coming small cities for its economic growth and residential appeal. Serving both businesses and residents is StoreEase Gainesville, a modern two-story facility that’s changing the way people think about self-storage.

The state-of-the-art property features tech-enabled unit access, allowing tenants to rent and manage their space through virtual management tools and online reservations. The streamlined move-in process can be completed in under two minutes, delivering the speed and convenience today’s customers expect.

The 128,010-square-foot facility boasts 626 storage units, including climate- and humidity-controlled spaces and drive-up units. Enclosed and covered RV and boat storage is also available, accommodating local outdoor enthusiasts and tenants who come from Atlanta to enjoy the state park and lake. With 24/7 access, security also remains a priority. The property is fully fenced and equipped with electronic gates and keyless entry. Digital video monitoring provides around-the-clock surveillance, and tenant protection plans offer additional peace of mind.

Owned by Liberty Investment Properties and managed by StoreEase, StoreEase Gainesville is meeting the needs of the community while setting a new standard for self-storage in Georgia.

he self-storage industry has been a profitable venture for many years. And the pot of gold has also extended to niche areas within the storage space: RV and boat, wine storage, art, office space, e-commerce fulfillment, and flex spaces, just to name a few.

But as with any economic endeavor, costs and expenses always have a considerable impact on profits; and with a significant volume of real estate debt becoming due in 2026 and 2027, strategizing for Q2 and beyond means paying close attention to how to navigate these debt maturities. And how the upcoming payments will affect each business will depend on many factors.

He adds that there also remains significant demand for exposure to self-storage within the investment community, so deals that are truly distressed due to fractured capital are likely to receive an injection of fresh equity before the existing debt portion of the capital stack is impacted.

The available alternatives will, of course, vary from borrower to borrower. However, generally speaking, lenders tend to be more willing to work within the self-storage sector. “Storage has proven to be among the most resilient of asset types, relative to other asset classes like office, hospitality, or retail, so it remains extremely attractive to both lenders and investors,” says Hill, “so unless we experience a major disruption in fundamentals, it will likely remain a beneficiary.”

That said, Hill cautions that deals that have already been extended and continue to underperform may face more serious consequences, such as forbearance. “However, I don’t think we will see a lot of properties in foreclosure or given back to lenders precisely because storage tends to perform so well.”

When it comes to setting realistic expectations while considering refinancing options, Hill observes that it all depends on the loan’s origination date. “Loans that were made in the post GFC era may result in some sticker shock as rates jump from historical lows to more historical averages,” he says. “However, loans taken out within the last several years may experience relief. The widespread availability of ‘interest-only’ amortization has helped many borrowers offset higher coupons to help facilitate borrowing through the context of the all-in loan constant.”

Gussis adds that owners seeking a variable rate loan may have runway for more downward interest rate movement, as those mortgage rates are typically tied to indices that move in direct correlation to the Fed Target Rates, which may see further cuts in 2026.

“Expansion in the commercial sector, particularly small businesses which operate with limited office and storage space, will continue to have a positive effect on storage,” says Gussis.

Hill stresses to keep in mind that it’s all situational. “Self-storage is a submarket business, so it will depend on the supply and demand characteristics of each individual market.” He recalls how the industry at large experienced overbuilding post the COVID-19 pandemic that resulted in a supply imbalance that led to significant headwinds in rental rates in subsequent years. “As long as additional new inventory is muted, we should start to see a recovery in many markets as they find new equilibrium and pricing power returns, but that will take some time and may extend beyond 2026.”

Zeroing in on interest rates, Gussis states that lower residential mortgage rates could be a wild card. “They started in the 6.75 percent range last year and are around 6 percent now. With further reduction in residential mortgage rates, we may see a possible influx of existing home sales, which would be beneficial to the self-storage industry.”

Hill also addresses borrowing costs, pointing out that they are always top of mind and a driving factor for borrowers, yet loan applicants have started to understand that these are unlikely to return to the historically low levels following the global financial crisis. “Liquidity for self-storage borrowers remains plentiful and rates are relatively attractive historically speaking, so the window of opportunity for borrowers is wide open.”

Hill notes that more broad economic indicators, such as consumer spending, inflation, and the job market, are important components that could drive interest rates and change the tenor of the market, which is something borrowers should always be mindful of.

For his part, Gussis warns that there are eventualities that can take everyone by surprise. “There is always the black swan turn that no one can predict,” he says. “Fortunately, with all the national and international activities that have transpired in the past year, there hasn’t been any major disruptions in the capital markets.”

Even operators who are a bit constrained and who may be concerned about having to resort to fire sales could avoid a worst-case scenario. “I expect sales to occur due to less than projected operating results eating into investment returns, but not many at deep discounts,” says Gussis. “Particularly, many newly built facilities just need more time to lease and for rental rates to increase. Lowering financing costs for bridge products would certainly help.”

Capitalization rates have also remained stable despite the increase in borrowing costs over the past several years. As Hill explains, this is due to the amount of equity looking for exposure to the asset class. “Additional cap rate compression seems somewhat unlikely barring some unforeseen shift in the market,” he says.

Gussis does caution to be mindful that lenders will be able to be more selective. “I would say the capital markets landscape for this year is made up of a spectrum of capital providers, all positioned to offer debt solutions. However, the stage looks to be set for lenders to compete on lower credit risk loans and to utilize discipline and discretion and be selective, based on being presented with a larger volume of loan requests from which to choose.”

obody likes to pay taxes, yet everyone must pay them in a multitude of ways: income, capital gains, sales, homes, and commercial property. These vary depending on your jurisdiction, and while you can get creative with deductions and deferring liability, you’re confined to what the law allows you to do.

Fortunately, when it comes to property taxes, the law does allow you to challenge them, but it’s crucial to know when and how to do it. While adding something else to your to-do list may seem like too much of a hassle, challenging a questionable tax assessment can very much be worth the time, especially if you submit a thorough appeal.

A big contributing factor to miscalculating the assessed taxes is how assessors obtain market data. AJ Osborne, CEO and founder of Cedar Creek Capital, warns that market reports may reflect skewed information. “When you look at national reports to verify delinquencies and property values, only about 15 percent of self-storage is represented,” he says. “This data comes from CMBS loans, which are mainly concentrated in the biggest market. As a result, that 15 percent may not represent the market your facility is in, and this can hurt you dramatically.”

In addition to how much the real estate itself is worth, it may be tempting to include every single line of income generating components: lease-up projections, ancillary services, and growth potential. But whether that’s relevant depends on how your jurisdiction calculates tax assessments.

“Some jurisdictions use an income- or a revenue-based approach that is impacted by dynamic pricing,” Shandor says. “Other jurisdictions use a cost-based approach, where the assessor is looking at the value to replace the structure. Market value, acquisition value, comps, and more can be used, so you have to dive in and make sure you understand what metrics they’re using to calculate your bill.”

Osborne also warns about looking only at comparables. “The biggest problem we run into is that tax assessors tend to assess storage as real estate. This can be a problem when you have two facilities that may appear identical yet have totally different revenue and net profits.”

He explains that while the buildings may be the same age, quality, and location, the unit makeup can be different. “One can have 50 percent of their units be 10-by-10 in a market that has no demand for that size, while the other one may have a different apportionment, with a higher percentage of units that are in high demand, and this one will make far more revenue than the first one.”

You Don’t Know What You Don’t Know
This is not the time for educated guesses. “Owners sometimes attempt to challenge tax bills on their own because they don’t want to incur the fees associated with hiring a professional,” states Shandor. “But when you weigh the cost of hiring a professional versus the reduction they could get you, in the long run, an attorney could save you more. There are so many parameters that come into play and deadlines to consider. You could have the best evidence in the world, but if you inadvertently miss a due date, it’s not going to matter. Sometimes it’s not worth handling it on your own, and you will net better results with a professional.”

Nitzberg agrees. “Unless the owner is knowledgeable in property taxes, how they work, and how they’re calculated, it’s best to hire a property tax firm that can review the tax and determine if it’s correct, or whether they need to file an appeal.” He warns that if you’re not an expert, you probably won’t come up with the right answer. “Property taxes can be confusing and complicated, and if you don’t know what you’re looking for, you won’t know which supporting documentation to add to challenge your assessed value.”

Mill Rate Vs. Property Value
When you receive your bill, review the value the assessor has assigned to your property. “There are two parts to a tax bill,” Nitzberg says. “One is the mill rate [or millage rate]. This is the rate the taxing entity has determined it to be. This won’t change, regardless of what you do. Then there’s the assessed value of your property. This part is highly subject to interpretation, and if it doesn’t reflect the market, you can appeal and adjust it.”

Miscalculations Of Income Assumptions
Ancillary products should not always be counted in the valuation. “That has nothing to do with the value of the real estate,” says Nitzberg. “If you estimate your income based on everyone paying on time and everything being leased up, you’re going to have inaccurate projections. It’s what you actually put in the bank that matters and creates value that would be taxable, so you need to be careful when the assessor hands you a form requesting information. You have to make sure you’re answering the correct way.”

What Not To Include In The Valuation
If your self-storage facility includes metal units, check to see if the assessor has included them in the value of your property, as they may be considered personal property and taxed differently. “It’s an arcane little niche in the tax code,” says Nitzberg. “Metal units are not considered real estate. The same goes for personal property as office equipment. In smaller storage facilities, that may not amount to much, but in large commercial real estate spaces, it could make a difference.”

Know The Law
While it may be reasonable to assume that everyone who works at the assessor’s office knows what they’re doing, that’s not always the case. In every jurisdiction, the tax appeals board is appointed by high-ranking executive officials. And as is often the case in government positions, sometimes the people who are appointed get there due to who they know, not what they know. While it’s possible that some know tax law like the back of their hand, many have little to no experience in either taxes or real estate. Therefore, it is up to you to be thorough in your due diligence.

Be As Detailed As Possible
“Most people who appeal their property taxes only fill out the form provided for that purpose and don’t provide any additional documentation,” says Nitzberg. When filing an appeal, you’ll have a greater likelihood of success if you include all supporting documents while citing every applicable statute. “You can do two pages or 25 pages. One shows you did the work. It’s important to not leave a lot of room for the assessor to hide.”

Documents to add include evaluations showcasing taxes on comparable properties, recent sales, a professional appraisal, any errors in the description of your property, photographs of the facility, market studies, capitalization rates, and anything else that helps support your claim.

Nitzberg adds that his firm submits hundreds of pages with all relevant details in support of an appeal. He points out that while doing things this way doesn’t guarantee you’ll get what you’re asking for, it would be rare to be fully denied. “The last thing the assessor wants is to be embarrassed in a hearing in front of the appeals board or end up in a news story. So many times, if you do everything in your power to prove your case, it’ll get approved.”

In summary, every owner should study their tax bill to ensure accuracy, especially when there has been a new assessment. If you truly believe it should be lower, it behooves you to appeal. “In most jurisdictions, there’s no filing fee,” adds Nitzberg. “In a handful of them, there’s a de minimis fee, but if it can save you money, it’s worth it. Ultimately, the government’s No. 1 goal is to collect as much money as possible. They run on a different track. It’s up to you to play the game well and protect your own bottom line.”

f you’re reading this article, you have likely signed an online wrap agreement. In fact, you’ve signed many of them. Think of all the user agreements where you’ve scrolled all the way down and clicked “I agree,” even though you hadn’t read them. It happens with software licenses, applications on your phone, and subscription services, to name a few. And while it’s become part and parcel of modern life, there are instances when such agreements do require careful reviewing: as a user, to be aware of what you’re agreeing to, and as a business owner, to ensure all your bases are covered in the event a client wants to challenge them.

From a self-storage standpoint, there are several factors to keep in mind. These can vary from state to state, and there are elements you’ll also want to consider depending on the type of storage you offer.

There are several types of wrap agreements, and it’s important to be aware of how they work so that you’re as protected as possible in the event a self-storage tenant challenges these agreements.

Browsewrap
Browsewrap agreements are passive. They are usually included in the footer of a website, where users may or may never see them. The idea behind them is that the users are implying their consent by the mere fact that they’re visiting the site.

Clickwrap
Clickwrap agreements actually require proactive consent from the website or application’s users. Think of the check boxes by statements along the lines of “I Agree” or “By clicking ‘submit’ you agree to [the company’s] terms and conditions.” The terms are linked somewhere in the text, but you can click the box, regardless of whether you actually clicked on the link to read such terms and conditions.

Scrollwrap
Scrollwrap agreements include the entirety of the terms and conditions in a pop-up box, and the user must scroll all the way to the end of the content in order to click on “I agree.” Without clicking on that box or button, the user cannot move further on the website or application.

That doesn’t mean that enforceability would be a sure bet. Zucker also cautions about always conducting due diligence. “A common drafting mistake that undermines enforceability is simply not following the specific requirements of the state’s lien laws in your rental agreement. Every state has its own unique provisions and notices that must be included in the lease to be enforceable.”

Jeff Greenberger, partner at Greenberger & Brewer, LLP agrees. “Some states require that the signature be at the end of the document. This is not something that’s specific to self-storage but in contract law in general.” He points out that while some practices may be standard in certain jurisdictions, such as initialing every page, unless that is required by law, it is not indicative that the user has seen or failed to see the content in each of the pages, and sometimes initial spaces on rental agreements are missed. Nevertheless, he advises to always study the local legal requirements.

This requires a lot more than ticking a box. Operators should use facility management systems that require uploading photo identification and that managers cross check all entered information. In addition, storage owners should highlight that agreements be entered into under the tenant’s full legal name. “Giving the wrong name isn’t always necessarily malicious. Some people use their nicknames or don’t include ‘Jr., Sr., II, or III’ when providing their names,” says Greenberger. “This can make things a lot harder down the road if you store motor vehicles, since many states require to notify all known lienholders. If the names don’t match when we send that letter to the bank, the bank could potentially flag the sale or tow if they don’t think the tenant is the actual owner.”

Ensuring the correct name up front can also make a difficult process a lot smoother in the case of loss, damage, or default; it can reduce the likelihood of a tenant claiming identity theft as well. “It’s always nice to be able to make sure that the person who says they’re renting from you is who they say they are,” says Greenberger, who advises being clear when drafting the agreement, regardless of whether the tenant has taken the time to read all of it. “One thing I have seen that is an advantage in the storage industry is that even if the tenant didn’t read the rental agreement all at execution, the agreement will still be enforceable if they continue a month-to-month tenancy, because even if they were in a rush when they first entered into the contract, they could’ve gone home and read it carefully a week later; and if they didn’t like it, they could’ve moved out at the end of the term. But if six months later the tenant says that he didn’t read it or understand it, that’s his own responsibility. The operator complied with his end of the bargain by being transparent with the terms.”

When asked about whether these types of agreements could be challenged if they include class action waivers or arbitration clauses, Zucker mentions that courts are usually reluctant to ignore the terms of an agreement accepted by both parties. “There are exceptions where the contract is made under duress or the capacity of the parties is questioned,” he says, “but generally, the courts support arbitration provisions with class action waivers.”

Ultimately, clickwrap agreements are ubiquitous and have become a part of daily life. “I would say that if courts were ever to decide to invalidate wrap agreements, self-storage operators would be at the end of a very long line of people fighting it,” says Greenberger. “It would upset rental car companies, Apple, and everyone who uses them.”

n self-storage, unused land isn’t just empty space, it’s unrealized revenue. Expansion, however, requires capital, time, and risk many operators or investors can’t justify, especially at an underperforming property. UpSize, a new company that launched in Feb. 2026, has come up with a no-cost solution: a revenue-sharing platform for modular storage units.

“Jake and I had each considered trying to parcel out unused land and sell it or build RV and boat parking enclosures, but both options were time- and capital-consuming,” says de Jong. “On the other hand, we knew that there was a lot of demand for drive-up units, especially at properties that were composed mainly of climate-controlled interior units.”

Both men arrived at the same conclusion: monetize unused land by adding modular storage units. “This was the fastest way to move a property toward transactable value, or to where it would be in the near future.”

Of course, portable containers cost money too, and capital partners aren’t typically going to put more money into an underperforming property or one that isn’t expected to hit projections. But what if the containers were free?

That’s when de Jong and Glatzer got together, and with additional financial backing from real estate expert Morris Sarway, created UpSize—a revenue sharing model that would allow operators to add portables to their plot with no capital investment.

Although UpSize launched less than three months ago, all the pieces are already in place. “Before we officially launched, we did four test sites to iron out any kinks and get all our ducks in a row. We wanted to be 100 percent ready to go the day the announcement was made.”

UpSize makes working with them completely hassle-free. Every deployment starts with a thorough site audit to make sure the property is a fit and the economics work. If it’s a go, the company then provides guidance on unit mix, looking at what customers need based on current occupancy levels, and pricing, based on rates for similar drive-up units in the market. There’s typically an eight- to 12-week lead time, and during that window UpSize takes care of permitting and obtaining approvals. When the product arrives, they do the installation. “We like to say, ‘You focus on running your facility while we expand your capacity,’” says de Jong. “Once we’re through, all you need to do is add them to your regular inventory and rent them up.”

As the operator begins earning money on the portables, so does UpSize, making it a true win-win. “We set each client up for success. We’ve invested in them, because the more they earn, the more we earn.” De Jong adds that despite the revenue share, all ancillary sales are for the operator to keep. “Locks, fees, protection plans, we take none of that income.”

The revenue-sharing structure follows a declining scale for the first three years, and there’s a buyout provision in year three (See Revenue Share Model.). While it could be a perpetual deal—it would remain a 50/50 split beyond year four with a 10 percent discount per year capped at 20 percent—de Jong says it ultimately makes more financial sense for the operator to buy them out by year four. He also states that if the owner winds up selling the facility before they’ve purchased the units, UpSize simply takes the unit buyout number through escrow.

“There’s no downside to UpSize,” says de Jong. “You’re adding revenue without adding capital, and that changes everything.”