our self-storage website is the digital front door of your facility, and in today’s competitive market, it’s critical to have an effective online presence.

Some operators report as much as 30 percent of rental inquiries happen after business hours, so an optimized website can make you money while you sleep. On the other hand, an outdated site can send tenants running toward your competition.

But what makes a good website? It’s a mix of design, content, and functionality. Here are seven actionable ways you can significantly improve your website to attract and convert more tenants.

Suffice it to say, design matters a lot. But that doesn’t mean you have to create a complicated website filled with over-the-top aesthetics. A modern, clean design that’s easy to navigate will get the job done.

USE QUALITY PHOTOGRAPHS
Potential tenants want to see what your facility looks like before they rent a unit and store their belongings there, so be sure to include a generous number of high-quality photos on your site to give your audience a true sense of your facility. If you’re highlighting amenities, add pictures. To instill a sense of trust in your security measures, add photos of your gate, cameras, and other technologies.

CREATE VIRTUAL TOUR VIDEOS
Video is another powerful format for visual content. While I don’t recommend putting a looping video in the hero section of your homepage, there is a lot of value in embedding a video further down the homepage that takes tenants on a tour of the premises. This is a heavier investment than photography, especially if you use drone footage, but it can pay off if you need another way to differentiate your facility and improve the content on your website.

In practice, designing a website for mobile means reworking each page so that the content fits a smaller screen and ensuring the pages load quickly to keep people engaged. The best way to create a mobile version of your site is to design it to be responsive, meaning the site will automatically adjust to fit whatever device the user is accessing it through.

Many content management systems (CMS) include responsive themes for website design out of the box. Building your site with one of these templates removes a lot of technical work and helps your content display properly. However, there’s still a bit of quality assurance work required. Even if your website lives in a responsive template, double check every page to ensure the content loads quickly and fits the screen. Your audience will thank you.

In essence, social proof is any kind of content where external sources vouch for the legitimacy and expertise of a business. In self-storage, that means reviews and customer testimonials.

Although potential tenants can read reviews on your Google Business Profile, you can make their lives easier (and your conversion rates higher) by including testimonials front and center on your website’s homepage.

Whenever possible, include pictures of the tenants who left the review. If you have the budget, create a video testimonial or two. By adding more detail about who is behind the review, you’re making your marketing more authentic, which makes it more trustworthy.

Additionally, clearly display pricing, available unit sizes, and features to streamline the selection process. Offer intuitive filtering options so customers can quickly find suitable storage solutions without unnecessary hassle.

Finally, make sure you keep the number of clicks to a minimum. The more complex the rental process, the less likely people are to complete it. Even if it means you collect less information on the front-end, it’s worth improving your conversion rate by reducing the number of hoops tenants must jump through.

Once you have your online rental flow built, take it for a test drive. Then, ask yourself, “Was this easy to use? Would I go through these steps if I was looking to rent?”

ith over 11 million households owning a recreational vehicle in the U.S. alone, running a remote RV and boat storage facility is a smart, innovative way to transform your self-storage business. The unparalleled convenience and customer satisfaction recorded by existing automated facilities point towards a future where unmanned sites become the norm.

While remote RV and boat storage have unique challenges, the benefits of reduced overhead and increased flexibility are hard to ignore. Let’s discuss some practical insights on how you can keep your RV and boat storage facility running smoothly without your on-site presence.

This emerging trend reflects a broader move toward convenience and technology-driven service models. Facility operators are now investing in smart gate access, mobile apps for reservation and payment, remote surveillance systems, and responsive virtual customer service. These innovations not only reduce overhead costs but also align with the expectations of modern RV and boat owners who prioritize flexibility, security, and ease of use.

As remote storage continues to gain traction, it’s poised to reshape how storage businesses are run, pushing the industry toward a more scalable and tech-savvy future. One exemplary case study is how White Label Storage’s remote management operations helped Northwest Valley RV & Boat Storage, a new facility in Sun City, Ariz., raise occupancy rates from 20 percent to 76 percent in only 4.5 months. Nonetheless, you should be aware of the specific challenges associated with operating a remote RV and boat storage facility and, most importantly, how to navigate them and position yourself for success.

Remote facility management introduces a new level of flexibility and efficiency for storage businesses. With benefits ranging from reduced operational costs to improved customer convenience, this business model is here to stay.

Reduced Overhead Costs
By eliminating the need for full-time, on-site personnel, remote operations allow owners to significantly reduce recurring expenses by:

• Minimizing payroll and administrative costs,
• Reducing utility and maintenance requirements tied to staffing, and
• Freeing up marketing budget, automation tools, or site improvements.

Enhanced Customer Experience
In the absence of in-person staff, technology plays a central role in creating a seamless, user-friendly experience. For example, you can invest in online reservation portals and automated billing to simplify the customer onboarding process. Similarly, virtual tours can help prospects explore units remotely before making a decision, while contactless check-in/check-out can foster a seamless renting experience that aligns with modern customer expectations.

Customer Communication And Support
Without an on-site team to address concerns face to face, communication becomes more complex and requires robust digital support.

To address this issue:

• Implement CRM and help desk systems to track and respond to customer requests,
• Offer self-service portals with detailed FAQs and chat support for quick resolutions, and
• Use call forwarding or virtual assistants to ensure timely customer service.

Security and Theft Prevention
Remote facilities are more likely to be broken into or vandalized, especially when storing high-value assets like RVs and boats.

To address security concerns:

• Use cloud-based camera systems with redundant backups for footage retention,
• Integrate alarm systems and motion detectors that trigger remote alerts, and
• Restrict access via electronic gates and maintain digital audit trails.

We recommend taking these proactive steps to ensure your remote storage facility is always safe for customers to use:

• Schedule periodic inspections through third-party vendors or part-time local staff.
• Build relationships with nearby contractors for urgent repairs.
• Deploy IoT sensors that can detect problems like power outages, leaks, or unauthorized entry.

Ultimately, remote operations hinge on the reliability of digital tools and infrastructure, which can be a point of vulnerability. Understanding operational best practices is critical to ensuring the uninterrupted functioning of these technologies.

Streamline Access Control and Customer Onboarding
A robust access control system can improve customer experience in a remote RV and boat storage facility. You should consider using gated entry with individual access codes to ensure security while providing 24/7 accessibility for customers. For seamless onboarding, develop an online rental center where new clients can easily reserve spaces, complete paperwork, and make payments without the need for an on-site staff.

Prioritize Security and Surveillance
Invest in advanced security features to give customers peace of mind about the safety of their valuable vehicles. For example, consider installing high-quality surveillance cameras with remote monitoring capabilities to enable timely tracking of the facility’s activities from anywhere. You may also use technologies like remote video monitoring integrated with AI to detect suspicious activities in real time. Another strategy is to implement individual unit alarms and regular virtual security checks to further enhance protection.

Maintain Effective Communication Channels
Effective communication fosters trust and customer satisfaction. Establish clear, multichannel communication methods to stay connected with your customers. Offer support through email, phone, and a user-friendly mobile app. Regularly send updates about facility improvements, weather alerts, or relevant local events. This proactive approach helps build trust and loyalty, even without a physical presence on site.

Build Customer Loyalty
Customer retention is as important as attracting new clients. Offer loyalty programs or incentives for long-term storage contracts. Maintain clean facilities and provide amenities tailored to RV and boat owners’ needs, such as ample maneuvering space or charging stations.

By integrating these strategies into your facility’s operations, you can enhance efficiency, security, and customer satisfaction while positioning your business for sustainable growth and scaling in the competitive RV and boat storage market.

Optimize Your Facility Design
As you expand, focus on creating an efficient layout that maximizes space utilization. Design your facility with a grid system to optimize vehicle storage and movement. Consider offering a mix of storage options, including open spaces, covered areas, and enclosed garages, to cater to diverse customer needs. Also, ensure your facility provides wide drive aisles and convenient amenities like electrical hookups and dump stations to attract and retain high-end tenants.

Consider Hybrid Models
Transitioning to a hybrid management model combines remote operations with minimal on-site staffing. This approach reduces payroll costs while maintaining efficiency through technology-driven solutions like property management software. Tasks such as reservations, maintenance scheduling, and customer support can be handled remotely, freeing up resources for strategic growth initiatives.

Expand Strategically
When scaling your business, conduct thorough market research to identify prime locations for expansion. Look for areas near tourist attractions, bodies of water, or major highways with a high concentration of RV and boat owners. Also, consider regions experiencing growth in outdoor recreation, such as the Southwest. By targeting areas with strong demand, you can ensure the success of your expanded operations while minimizing vacancy risks.

nce believed to be a low-tech industry, the self-storage community is now far from it. Self-storage owners and facility managers are adopting digital management systems and software programs designed to help improve daily operations within the facilities. With the help of these programs, operators can ensure that no issue in the facility is overlooked, employees are meeting their goals and deadlines, and tenants are satisfied with the service.

The high demand for this type of technology can be explained by the results it generates, including an increase in profitability, higher rental demand, and an improved workflow. And that’s not all: These programs are much simpler to use when compared to paper records/documents or online spreadsheets that need to be manually updated constantly.

Technology can automate systems that otherwise would’ve caused an increase in the mental workload of self-storage employees. Without that added pressure, these professionals can perform at a much higher rate and focus their attention on additional necessities within the facilities.

To cover how the self-storage industry is evolving regarding technology usage, MSM interviewed representatives from companies that are changing the industry and helping self-storage owners and managers improve their operations. We spoke with NodaFi, Storage Commander, and Tenant Inc. to understand how they’re helping their self-storage clients thrive.

“Fast forward, that was the inception of it. Eventually, we started talking to hundreds, probably thousands, of facility managers, maintenance workers, technicians, janitors, whoever we could talk to within the space,” says Pandl. They discovered that maintenance workers were using paper documents and spreadsheets to track their demands, which was slowing them down. “That was the moment we decided to do something a lot better to solve what we saw as a pretty massive problem,” Pandl added.

That’s when NodaFi created the Facilities Operations System (FOS). “FOS captures what keeps a facility running, whether that’s a self-storage facility, a hospital, an airport, or a school. It’s a lot more than just the maintenance component, there’s a whole operations layer, as well,” Pandl says.

What’s FOS? It’s a software platform that can help self-storage managers streamline their operations by tracking maintenance tasks, scheduling work orders, improving communication between managers and employees, and organizing documentation within the platform. In addition, it generates data and reports about the company.

According to Pandl, one of the biggest challenges that self-storage managers face (either small, independent owners and managers or large, multifacility chains) is their ever-growing to-do lists, and that’s where FOS can help. “We take that off our client’s plate and put that under an automated system.”

By using FOS, Pandl believes that clients can increase profitability as they improve their operations. However, the platform can also help decrease expenses, such as staffing costs, for example. Since FOS is automated, it can lower the workload of self-storage managers. “Instead of a regional manager overseeing 10 facilities, they can manage 20 or 25,” says Pandl.

NodaFi’s FOS is easy to use and intuitive, but the brand also provides training to its clients. “We arm our clients with the tools that they need to bring to their team so that everybody can get up to speed using things effectively.”

“Over the last year, we’ve been working to bring these five companies together as one under the Storage Commander brand and work on launching our new product, SC Navigator. The most exciting thing for us is that we have a combined industry experience of over 50 years,” says Richard Witka. “We’re really excited about where we’re headed. SC Navigator serves the self-storage industry at a very high level and in a way that we think is going to be a big game changer for the industry.”

What is SC Navigator? It’s a cloud-based software as a system (SaaS) property management platform designed to reduce manual tasks by automating processes within self-storage facilities. Storage Commander believes that by using SC Navigator, self-storage owners and managers can increase their profitability and improve the efficiency of their facilities, helping them run smoothly.

The program can be used by owners and operators with a single location, as well as those running multifacility companies and businesses. “We built the software so that it can grow with the operator,” says Joel Washburn.

The program can help self-storage managers improve their efficiency by automating administrative and repetitive tasks, such as invoicing. SC Navigator can streamline invoicing with automated rent collection. It’s also possible to open the software on multiple screens at once, so the whole team has access to the data. SC Navigator can run on a PC, smartphone, or tablet. That way, it’s easier to check on work demands and the team’s productivity, even when away from the office.

And what about profitability? “By using SC Navigator, we can reduce expenses on the employee side,” says Witka, who explained that the software does a lot of the repetitive tasks, meaning that employees can work on other areas of the business. Managers and owners can then save on employee costs.

The software can also identify “flight risks,” which are tenants interested in moving out or who aren’t satisfied with the service. It does that by analyzing tenant behavior. “If a tenant hasn’t been on the property in nine months, but then, all of a sudden, they’re there three days in a row, they’re a flight risk,” says Washburn. “The tech can communicate with that tenant and send them a message about how they’re appreciated. We can offer them a 20 percent promotion, just as an appreciation token to try and help raise that occupancy.”

Witka and Washburn say that the software can generate data and reports about the facilities that can help them grow. Storage Commander also offers services such as marketing and tenant insurance to support their clients in that area as well. They share that their goal is to see their clients thriving and growing.

According to Bevan, the self-storage industry is hyper-competitive, especially in recent years, which puts pressure on all operators, regardless of size. The competitive aspect of the industry can affect operators in attracting tenants and running their companies efficiently. In her opinion, this is why it’s so important to leverage technology to help improve business operations.

“Standing out and staying profitable requires sophisticated tools and strategies, and Tenant Inc. addresses this by providing operators with an integrated technology platform designed to enhance competitiveness through improved online presence, advanced property management, significant operational automation, data insights, and a modern tenant experience,” she says.

The Hummingbird software automates processes for self-storage owners and managers, improving their efficiency by taking part of the workload, especially regarding financial and repetitive tasks, off their plates. Bevan explains that the platform is scalable, meaning it can be used by businesses of all sizes. “You’re able to automate texts and emails with one-click payment link for customers, letting them know their payment is due in X number of days.”

Mariposa creates websites adapted to SEO best practices, which makes them rank high on Google searches and increases visibility for the company. In addition, making the process simpler, tenants can reserve or rent their units online and Tenant Inc.’s clients can verify tenants’ identities online.

Tenant Inc. helps its clients increase efficiency and profitability by providing a platform catered to their needs. “Operators that have switched to Tenant Inc. see a 30 percent increase in online rentals, a reduction in delinquencies, and modernizing operations, and switching to Tenant Inc. gives you a future-proof, scalable platform that grows with your business,” says Bevan.

Even though the self-storage industry is becoming more intertwined with technology as time passes, there are still managers and operators who aren’t interested in management software, which is understandable. “Change can be daunting, especially when your current system works, but the biggest thing is always wondering the ‘what-ifs,’ if your operations could be more efficient, your revenue could increase, and you could save hours of work each week,” says Bevan. “We’ve helped operators transition seamlessly hundreds of times without disrupting daily operations.”

he self-storage industry was still in its infancy in 1975 when the Self Storage Association (SSA) was formed. Now 50 years later, it’s hard to believe how far the industry has come in terms of growth, investor interest, and innovation. In celebration of this milestone, numerous events have been planned.

One of the main attractions will be seeing award-winning musician Darius Rucker, the former front man of the band Hootie & the Blowfish, performing his hits exclusively for SSA attendees. “We couldn’t be more excited to have a musical icon like Darius Rucker headline our private reception in Las Vegas,” said SSA President and CEO Tim Dietz. “Darius is a legendary singer and songwriter who appeals to fans of all musical genres, and the SSA is thrilled that he chose to help us commemorate our golden anniversary.”

Charity Storage was founded in 2011 by Lance Watkins, CEO of Tenant, Inc., and the late Barry Hoeven, founder of Westport Properties. It is a national self-storage industry nonprofit that is supported by many self-storage owners, operators, management companies, industry associations, organizations, and vendors. The organization uses existing storage facility operations to raise funds to support charities throughout the United States.

Barry Hoeven was also the founder of Kure It Cancer Research. Celebrating 18 years as an Orange County, Calif.-based nonprofit, Kure It raises money for innovative cancer research for underfunded projects at comprehensive cancer centers across the U.S. Using a tenant-driven Round Up For Research program with storage partners, Kure It is leaving a significant mark on patient treatments, screening, and preventive programs.

“Kure It is deeply grateful to the storage industry for turning compassion into action. Your unwavering support fuels the research that brings hope and world-class treatment options to thousands of patients,” says Brooke Adams, director of strategy and development. “We encourage all self-storage operators and vendors to learn how they can support the good work we are doing with Charity Storage and Kure It’s Round Up For Research program. This program is designed to engage tenants to assist with raising funds for the SSA Scholarship Fund, Kure It, and Charity Storage.”

For more information, visit www.selfstorage.org, www.charitystorage.org, and www.kureit.org.

uke Shardlow has been working in the technology industry for the past 20 years, having had the opportunity to lead key aspects of renowned companies such as eBay and Staples. The Australian native moved with his family to the U.S. in 2009, initially settling in the Bay Area and later relocated to the Boston area, where he resides to this day.

“In Boston, I joined Launchpad Venture Group (LVG), where I’ve been a member for several years. Through LVG, I connected with the Ai Lean team and began advising them on technology and product strategy,” Shardlow states. “When their CEO relocated to Europe for family reasons in early 2024, I was invited to step into the leadership role.”

Ai Lean is Shardlow’s first time working in the self-storage industry, and he has been captivated by the camaraderie he has found in the process. “This is my first foray into the self-storage industry. I have been blown away by how inclusive and collaborative the industry is. It’s rare to find an industry where competitors truly work together and support each other, all to benefit the industry as a whole and ultimately the tenant experience. While many industries talk a big game regarding collaboration, the storage industry actually lives it.”

“From day one, we’ve been an ‘AI-forward’ company—to borrow the phrase from Jeffrey Bussgang, author of The Experimentation Machine—not because it’s trendy, but because we saw the massive opportunity to apply intelligent automation to solve real problems in self-storage operations. While many companies are just now exploring how to add AI features, we built our entire business model around leveraging AI strategically,” he states. “The difference is that we don’t view AI as a feature to bolt onto existing processes. It’s foundational to how we operate, from how we develop our products and analyze market trends to how we optimize our client services and monitor regulatory changes. This approach isn’t about having a chatbot on our website; it’s about using intelligent systems to drive better outcomes across every aspect of our business.”

According to Shardlow, the key to achieving success with AI in the industry is to build it from scratch, instead of trying to add it to existing models. “The strategic advantage comes from our AI-first approach to product development. We’re not retrofitting AI onto legacy systems, we’re building intelligent automation from the ground up,” he says. “The real competitive advantage isn’t any single AI feature [but rather] having an entire organization and product ecosystem built around intelligent automation. That foundation allows us to innovate faster, serve clients better, and stay ahead of regulatory changes in ways that companies with traditional, non-AI architectures simply can’t match. The operators who succeed long term will be those who partner with companies that truly understand how to apply AI strategically across the entire business ecosystem, not just as a surface-level add-on.”

The same rule applies for improving asset valuation in the storage sector. “Clean financials tell the story. When you have automated delinquency management, your NOI becomes more predictable and your bad debt write-offs shrink significantly. Investors and appraisers love consistent processes that demonstrate professional management. For smaller operators, this is actually crucial because they don’t have the brand recognition of the big players. When a potential buyer sees that you’ve systematized your operations and have solid delinquency controls in place, it signals that this isn’t just a mom-and-pop operation … it’s a professionally run business. That perception can add real value to your asset.”

He advises documenting interactions when managing or mitigating delinquency-related challenges in high-risk compliance areas. “Documentation is everything. In the world we live in, you need bulletproof records of every interaction, every notice sent, and every deadline met. Manual processes just can’t deliver that level of precision consistently. We also see successful operators take a proactive stance on legal requirements rather than a reactive one. Instead of waiting for regulations to change and scrambling to adapt, they implement systems and automation robust enough to handle evolving compliance requirements. It’s about building operational resilience from the ground up.”

As for maximizing returns in the auction process, Shardlow says you should treat it as a legitimate part of your revenue strategy, not just something you do when you must. “Obviously, quality listings and professional presentations make a huge difference. We’ve found that when auction listings include good photos, accurate descriptions, and are posted consistently across multiple platforms, bidding activity increases significantly,” he says. “Timing matters. Regular auction schedules, rather than sporadic ones, tend to build buyer confidence and participation.”

he average cap rate the last eight quarters was 5.72 percent in a range from 5.66 to 5.83 or only 17 basis points (bps), a steady and narrow range. It is another indicator of the steady and resilient characteristics of self-storage in uncertain macro-economic conditions and investment markets. This steady, if not dull, trend is reflected in the the Treasury Spread & Self Storage Sales chart. Interestingly, the cap rate spread to 10-year Treasuries averaged 150 bps over the last eight quarters, but a wider range as a function of dynamic Fed movement and slower market reactions. Overall, the Treasury spreads have been at record lows in the last eight quarters compared to the 20-year time trend.

See Treasury Interest Rates & Self-Storage Cap Rates chart.

See Segmentation by Investment Quality Q2 2025 table.

Many market participants expressed a belief or hope that interest rates would decline somewhat this year, suggesting lower cap rates. We note a similar sentiment in the past eight quarters, but exogeneous factors such as the election, global warfare, and U.S. tariffs have created uncertainty. As a result, we have seen three directional changes in investment rates over the last eight quarters.

Going forward, investment rates are likely to remain steady, pending clear direction in macro-economic conditions and 10-year Treasuries. Comparing self-storage market conditions to standard unit sizes (such as 5-by-5, 5-by-10, or 10-by-10), market sentiment seems to indicate a 5-by-10 outlook for the next quarter.

magine you have found the perfect self-storage facility to invest in. Buying right is only half the equation to a successful deal. Now it’s time to execute on the business plan and produce a profitable investment. How do you decide the best way to operate a facility? When it comes to managing self-storage properties, investors have a few options:

• Self-manage,
• Remote management, or
• Outsource to a third party.

So, which management solution is right for you? It depends on your goals. There isn’t a one-size-fits-all approach to every situation. Are you looking to scale and grow your self-storage investment business? Third-party management might be right for you. Are you looking to maximize profits and stay small? Perhaps self-management is something you should consider.

The top three publicly traded REITs in the industry (Extra Space Storage, CubeSmart, and Public Storage) manage hundreds of facilities on behalf of other owners. The chart Third-Party Managed Stores shows how many facilities each REIT manages.

See the Third-Party-Managed Stores chart.

Having the most third-party managed stores doesn’t necessarily lead to the best performance. Have you ever wondered if one REIT outperforms the others in a given market? Which REITs have the highest achieved rates in a given MSA? Should this factor into your decision when choosing a REIT to manage your facility?

The bar graph compares REIT achieved rates and street rates for the New York, N.Y., MSA going back to Q4 2020.

See the New York, N.Y., MSA chart.

Why is CubeSmart achieving such better rates in this MSA? Does it have something to do with scalability and the number of stores owned in the market?

See the REIT Number of Stores in New York, N.Y., MSA chart.

What does the occupancy story tell us?

See the REIT Average Occupancy – New York, N.Y., MSA chart.

You will notice in the first chart that CubeSmart has taken a contrarian approach in this market. CubeSmart’s street rates (advertised rates) are currently slightly higher than their own achieved rates. Compare this to Public Storage and Extra Space, which currently have street rates lower than achieved rates. This hasn’t always been the case for Public Storage and Extra Space. Previous to 2023, advertised rates for Public Storage and Extra Space were higher than achieved rates, and only recently that trend has reversed. This is likely an attempt to entice new customers in a market with lower demand.

CubeSmart has largely maintained their unique pricing strategy since Q4 2020. In fact, since Q4 2020 CubeSmart’s street rates have, on average, been 20.9 percent higher than their achieved rates. Extra Space’s street rates have, on average, been 7.6 percent higher than their achieved rates since Q4 2020. Public Storage’s street rates have actually, on average, been 2.7 percent lower than their achieved rates since Q4 2020.

By keeping advertised rates higher than competitors, CubeSmart captures higher revenue from the first day a new customer rents a unit. This boosts overall move-in revenue and achieved rates. In fact, from Q4 2020 to Q1 2025, CubeSmart has increased achieved rates by 26.1 percent, the highest compared to Extra Space (14.2 percent increase) and Public Storage (25.8 percent increase). In CubeSmart’s Q3 2024 earnings call, CubeSmart commented on attracting the highest quality customers who are willing to pay “premium rates.” CubeSmart also commented that these higher quality customers “tend to stay longer and are less sensitive to price increases.” The data we are seeing (higher street rates from CubeSmart) supports CubeSmart’s commentary on the subject. On the flip side, CubeSmart isn’t attracting price sensitive customers due to higher initial rates, so naturally CubeSmart’s occupancy will suffer compared to competitors with lower advertised rates. Extra Space is implementing the opposite strategy than CubeSmart in the market (lower advertised rates leading to lower achieved rates and higher occupancy).

Even though occupancy for all three REITs has decreased since 2022, achieved rates have stayed the same, or even increased in CubeSmart’s case. The data suggests that CubeSmart’s higher move-in rates have led to higher achieved rates and lower occupancy than competitors in New York.

When comparing the performance of REITs within the New York market, we must talk about expenses. The REIT Expense Ratios – New York, N.Y., MSA table shows expense ratios over the last year for each REIT within the New York MSA.

See the REIT Expense Ratios – New York, N.Y., MSA table.

Let’s analyze a simple hypothetical example using all the data discussed above and look at potential net operating income (NOI) and value of a 50,000 square foot facility for each REIT.

See the Hypothetical REIT Property Valuation Example.

It is worth noting the above analysis doesn’t account for tenant insurance revenue sharing. Each REIT differs in the amount of revenue from tenant insurance, if any, that is shared with the owner when a REIT is hired for management. Tenant insurance revenue sharing is a topic worth discussing when considering hiring a REIT to manage your property.

In conclusion, CubeSmart is achieving the highest rates with the best expense ratio and has outperformed the other REITs since Q4 2020. If you are an active investor in the New York MSA and are considering hiring a REIT to manage your property, CubeSmart has a good argument to make for management.

If you want more data on other MSAs, reach out to support@tractiq.com or visit our website, tractiq.com/reits-compare-across-top-msas, to download your full report.

icking up a part-time job in high school used to be a rite of passage for teenagers. It was how you earned money for dates, a new record, and maybe even a used set of wheels. But most people aren’t still talking about that high school job 40 years later. Guy Middlebrooks is an exception. He took a part-time gig at Winn-Dixie supermarkets and turned it into a career. While he eventually pivoted to self-storage, the lessons he learned stocking shelves and managing stores still resonate today.

Winn-Dixie recognized his potential early. They invested in him, sending him to meat cutting and produce schools, then off to Jacksonville for a two-week certification course that opened doors to corporate positions. “After that, I became a district manager, then regional manager.”

At every level, Middlebrooks absorbed the lessons. “Early on, it was all about customer service, store conditions, cleanliness, managing employees and schedules. Later it was budgets, financials, and P & L reports. That all carried over when I transitioned into CubeSmart.”

In 2006, his résumé landed on the desk of a recruiter for U-Store-It. “That was our brand before we became CubeSmart,” Middlebrooks says. “It had gone public two years earlier, but we didn’t rebrand until 2011.”

Middlebrooks remembers the phone call like it was yesterday. “The recruiter says he’s calling on behalf of a self-storage company that had recently gone public, raised a lot of capital, and was growing fast, and they were looking for operations people to run properties.”

At the time, Middlebrooks had no real knowledge of the self-storage industry, so he politely declined. But the recruiter anticipated that. “He says, ‘No, Guy. They want people like you—your skill set, your experience in retail. They think you’ll fit in well with their industry.’”

Despite some hesitation, Middlebrooks made the leap, leaving behind the familiar comfort and occasional chaos of Winn-Dixie to manage a Florida district for U-Store-It, a territory that stretched from Jacksonville to St. Augustine. He quickly found his footing, applying lessons from retail through a self-storage lens and spotting connections others might miss.

“In retail, you have your everyday grocery shoppers,” Middlebrooks says. “But as a store manager, you begin to recognize life events—weddings, funerals, birthdays, graduations. Customers need your help, whether it’s a catering tray, a cake, or a bundle of balloons.”

Drawing the parallel, he adds, “And what’s the primary driver in this business? Life events.” He counts them off on his fingers—death, divorce, downsizing, displacement, deployment—and continues. “When someone passes away or a couple splits, sentimental items or furniture gets placed in storage. Someone loses a job and downsizes, they turn to storage. Conversely, your career is booming, so you’re spending money and you need a place for your toys—the boat, motorcycle, or convertible. That’s the self-storage cycle.”

With this understanding, Middlebrooks made customer care a focus, just as he had done at Winn-Dixie. “When someone walks in or calls to rent a unit, our teammates need to understand their situation and be empathetic. The personal interactions we have with our customers really set us apart from the competition.”

Putting this perspective into action made his district very successful, and it didn’t go unnoticed. Not long after, he received a call—not from a recruiter but from the CEO himself. “Dean Jernigan, the CEO at the time, asked me to take over Atlanta as well,” recalls Middlebrooks. Jernigan told him, “We need you to duplicate what you did in Florida—Atlanta’s struggling.”

Not long after that, Jernigan asked Middlebrooks to take on the director of operations role. Middlebrooks was game, but there was a catch. The Florida native would have to uproot his family and move to Malvern, Pa.

“There was a lot of discussion about that,” Middlebrooks says with a laugh. “We lived eight blocks from the ocean in Neptune Beach, and our kids, Matthew and Hannah, loved it there. Giving that up wasn’t easy. But Dean was persuasive, telling me I’d have a really bright future with the company if I did it—he even got my wife in his corner!”

He’s not exaggerating. Middlebrooks and his team grew the original 80 stores acquired through United Stor-All to an impressive 850 third-party-managed locations.

But there was still another rung on the ladder left to climb. Today, Middlebrooks serves as executive vice president of operations, overseeing store operations, facility services, real estate development, and store transitions. Although Middlebrooks has taken on a lot of responsibility, he says the secret to his success is having a good team. “I work with some really good folks,” he says with a bit of his Southern drawl shining through. “I only have four direct reports, but there are many other layers of people helping out.”

That’s what has allowed him to keep a finger in the third-party-management pie. “I didn’t want to give it up completely—I enjoy it too much,” he says. “So, along with everything else, I’m still involved, but I promoted Devin Crow to run the day-to-day, and I’m lucky to have him.”

Middlebrooks also made a lot of connections during his three-year stint with the Self Storage Association (SSA). “I was on the board of the SSA as their first-ever REIT representative,” says Middlebrooks. “In 2010 or so, it got to a point where the REITs were getting so big that the SSA wanted a voice from them on the board. And that was me.”

There wasn’t any tension between himself and smaller operators; rather, being there helped open the lines of communication to make business better for everyone, regardless of size.

His involvement with the associations didn’t stop there. Middlebrooks has gone on to speak at numerous events for the Texas, Arizona, Colorado, and New York SSA chapters; he even joined the latter two years ago. “We have a big presence in New York City as a company, so I’m able to stay close to what’s going on there, offer support to the association and the board, even help out from a political perspective.”

His goal is to serve them all. “If there’s a manager there, people can choose whether or not to interact. I think that’s important because technology can fail. We’ve all experienced hiccups.”

One tech hiccup he recalls happened when he was attending a conference shortly after the hotel implemented Bluetooth-enabled locks on the rooms. “I did the pre-check, went straight to my room, and it didn’t work, so then I’m having to drag my luggage back down to the check-in desk anyhow. It’s like, ‘Just give me a key I can put in my wallet, please,’” he says with a laugh.

Lastly, Middlebrooks shares the biggest headwind in the industry today: “New supply,” he says matter-of-factly. “That can have a dramatic effect on local market pricing, occupancy, and financial results. It’s fine when there’s a lack of supply or a fast-growing population, but not when a market is already oversaturated. We get worked up about legislative issues and such, and those are important to keep an eye on too, but ultimately oversupply is our biggest challenge.”

Mentorship is also something close to Middlebrooks’ heart. “I’ve mentored many teammates who started right out of college or whom we brought in with no industry experience. Over 17 years, I’ve watched them grow in their career, get married, have kids, and even attend some of their weddings. It’s been a joy to help them on their journeys. It’s all about our company culture and our values … and the leaders who genuinely care about developing their teams and role model what it means to be a CubeSmart teammate. Those are the things I’m most proud of. Their stories are my greatest successes.”

Middlebrooks shakes his head, as if he still doesn’t believe it. “I mean, that’s a big deal!”

When he gets back to the Sunshine State, does he ever think about staying? “We’ll probably retire there one day, but there are no plans in the immediate future! I’m continuing to take on new responsibilities, so I’m in this for the long haul.”

Middlebrooks pauses for a moment, then smiles. “I’ll put it this way: Your story may be my first cover, but I don’t plan on it being my last.”

ates are down—until they’re up again. Does this sound familiar?

If you’ve been watching mortgage rates over the last few years, you’d probably agree that it has become very difficult to see any consistent movement in one direction or another. Mortgage rates drop one week, spike the next, then dip again—only to bounce back. In the self-storage financing world, where deal timelines can be tight and financing options are increasingly diverse, this interest rate rollercoaster can be frustrating.

Here’s the simple truth: Trying to time the interest rate markets is somewhere between extremely difficult and impossible. Rates rarely move as expected, or when needed. Instead of trying to predict what’s next, smart self-storage investors are using conservative rate assumptions—or a range of rates—when evaluating their next opportunity to ensure their investment goals can be met despite reasonable rate variability. If rates happen to be lower than projected when it’s time to close the loan, all the better—but don’t count on it. Time is much better spent focusing on specific financing goals, understanding the different types of lenders, and knowing what each offers to find the best fit for your business plan.

Let’s break down how today’s market is behaving and how you can navigate the self-storage lending landscape with more clarity and confidence, regardless of where rates head tomorrow.

Since that time, many self-storage buyers and sellers have been on the sidelines with the hope that interest rates will come back down. While the Fed cut rates a few times in 2024 and inflation has shown intermittent signs of cooling, commercial interest rates have not come down much, and the path for rates in 2025 and into 2026 remains unclear. It’s also important to note that additional Fed rate cuts do not guarantee that U.S. Treasury yields will follow suit. When the Fed Funds rate was reduced in 2024, the yields on the five- and 10-year U.S. Treasuries (the primary fixed-rate indices used by commercial lenders) actually increased!

Many factors can and do affect U.S. Treasury bond rates, and they seem to arise with increasing frequency. Economic event risk and the overall level of uncertainty are extremely high today in the U.S. and across the globe. Factors including geopolitical instability, tariffs, and U.S. fiscal policy will very likely continue to drive interest rate volatility. A surprise inflation report, a shift in employment data, or another unexpected global event can swing rates overnight.

This uncertainty leaves many self-storage owners and investors asking the same question: Should I wait for a better rate? Too often, the answer is no. Many investors miss out on the right deal, at the right time, while waiting for a hypothetical “perfect” rate. The reality is that the perfect rate rarely comes when you need it.

After roughly three years of waiting for a lower interest rate environment, the most active self-storage buyers, sellers, and developers are now incorporating today’s rates into their business plans. Operators are focusing on strategy with today’s rates in mind, not on speculation. Instead of asking whether rates will go down, they are asking what loan structures and which lenders best fit their plans right now.

Banks currently hold over 50 percent of the nearly $6 trillion of outstanding commercial real estate debt (according to Trepp) and remain the primary lenders in the self-storage industry. Banks provide approximately 80 percent of all commercial construction loans and are still the go-to lender for most self-storage developers today. While they have become more conservative and capital-constrained over the last few years as rates have risen, community, local, and regional banks are often the first stop for many self-storage investors. Typical bank loan terms are between three and seven years, with a 25-year amortization and a maximum loan-to-value (LTV) of 75 percent. This LTV is usually subject to a minimum debt service coverage ratio (DSCR) of 1.25 to 1.35, which, with today’s higher rates, often limits loan proceeds to 60 percent to 70 percent LTV. Construction loan proceeds are generally limited to 65 percent to 70 percent loan to cost (LTC), requiring the borrower to provide 30 percent to 35 percent of total development costs in equity. Banks underwrite borrower creditworthiness and financial strength as much as the underlying real estate asset and, with very few exceptions, require personal guarantees.

Credit unions are often overlooked but can be excellent for smaller acquisitions or owner-operators. They are becoming more familiar with the self-storage asset class and offer terms similar to banks. Unlike many other lenders, credit unions often do not impose prepayment penalties—a clear advantage if rates fall during the loan term. While some credit unions offer construction loans, many have limited capacity and are generally not a good fit for larger, more complex deals.

CMBS, or commercial mortgage-backed securities, can be a great source for competitive, non-recourse, fixed-rate debt. Unlike lenders who hold loans on their balance sheet, CMBS loans are pooled together and sold into the capital markets as securities. CMBS underwriting focuses primarily on the underlying real estate and cash flow, with less emphasis on borrower financial strength, and is best suited to properties with stabilized cash flow. Many borrowers also choose CMBS loans to secure a five- or 10-year fixed rate with interest-only payments instead of a 25- or 30-year amortization schedule, which can boost current net cash flow. Because of the interest-only payments and a lower DSCR requirement (often around 1.20), CMBS loan proceeds can exceed those of most other lenders. The main downsides are high prepayment penalties, higher transaction costs than a conventional bank loan, and somewhat impersonal third-party servicing after closing.

Life insurance company loans share some advantages with CMBS loans, such as limited personal recourse, long-term fixed rates, and interest-only payments. Life company lending also focuses on properties with stable cash flow. Unlike CMBS lenders, many life companies will lock the interest rate at the time of loan application instead of waiting until closing. In the past, life companies focused mainly on larger loans in primary and secondary markets, but today many have widened their scope to include smaller loans and smaller markets. For low-leverage loans (50 percent or less), life companies offer some of the lowest rates in the market.

Bridge lenders and debt funds provide speed and flexibility when traditional lenders won’t. They’re ideal for lease-up, expansions, value-add strategies, or distressed deals that need to close quickly. You’ll pay more in interest, but the creative structure and faster timeline often make the deal possible. Just be sure you have a clear exit plan, whether that’s refinancing or selling, as the high interest costs add up quickly.

SBA loans are partially government-backed and can be a great option for newer owner-operators, first-time buyers/developers and/or smaller transactions. They offer higher leverage (up to 85 percent to 90 percent) and longer terms. However, they come with extensive documentation, higher fees, and often a slower closing process, so plan ahead if you choose this route.

Start by considering your goals. Is this a short-term repositioning or a long-term hold? Do you need speed and flexibility, or do you have time to close? Is maximum leverage needed to get this deal done? How important is non-recourse? Do you plan to sell or refinance within a few years?

Next, look at the full loan structure, not just the rate. Prepayment penalties, recourse requirements, amortization terms, and fixed versus floating rates can affect your returns just as much as a small difference in interest rates.

Finally, work with experienced lenders or mortgage advisors who understand self-storage and can hit the ground running.

In this environment, certainty of close, the optimal financing structure, and a lender aligned with your goals are worth far more than saving a fraction of a percent on the interest rate.

n today’s competitive self-storage market, owners and investors are looking for every advantage to improve cash flow, reduce tax liability, and fuel future growth. One of the most powerful, yet still underutilized, strategies is cost segregation.

Cost segregation is not just an accounting tactic; it is a strategic tax strategy enabling owners of self-storage facilities to uncover hundreds of thousands of dollars in accelerated tax savings. Whether you are developing new properties, acquiring existing ones, or expanding your storage portfolio, understanding how cost segregation works and when to use it could be a game-changer to your bottom line.

When you construct or buy a storage facility, the IRS allows you to depreciate the entire building over 39 years (commercial real estate). But not everything in a building needs to be depreciated that slowly. Certain components qualify for shorter depreciation schedules, typically five, seven, or 15 years.

By identifying and reclassifying these components, a cost segregation study accelerates your depreciation deductions, meaning you can write off more now instead of waiting nearly four decades.

Lots of qualifying components
Storage facility sites often include significant outdoor assets, like fencing, asphalt paving, sidewalks, storm drainage, landscaping, lighting, signage, and security systems. Many storage facilities have a sales office with removable flooring and cabinetry and may offer conditioned space to their customers. All these assets are prime candidates for accelerated depreciation.

Immediate cash flow impact
Many storage facilities operate on tight margins, especially in the first few years. A cost segregation study can bring in substantial deductions, reducing taxable income and freeing up cash for reinvestment. Even if you have owned your facility for years, you can still do a look-back study to catch up on missed depreciation.

Applicable for renovations and expansions
Owners who converted an existing building to self-storage space are eligible for special tax treatment: “Qualified Improvement Property” or QIP.

• You have acquired or built a storage property in the last 15 years.
• You are planning to build or renovate soon.
• You are expecting high income in the next few years and want to reduce your tax burden.

Even older properties can benefit; the IRS allows catch-up depreciation without amending past returns.

Studies should always be conducted by qualified professionals (engineers or firms specializing in cost segregation) to ensure they meet IRS standards and withstand audit scrutiny.

• Phase-down of bonus depreciation: While 100 percent bonus depreciation is still available for properties placed in service before 2023, it is decreasing gradually (80 percent in 2023, 60 percent in 2024, etc.).
• Passive activity rules: If you are not a real estate professional, your ability to use losses from cost segregation may be limited. Consult with your CPA about how it applies to your specific tax situation.
• Recapture on sale: Accelerated depreciation may result in higher depreciation recapture when you sell, but the time-value of money still often makes cost segregation a net win, especially if you plan to hold for three-plus years or engage in 1031 exchanges.

In an industry where every advantage counts, cost segregation is more than a tax strategy, it’s a smart business move.

ike many people in the industry, most successful owners of specialty storage facilities got into their niche without plans to do so. Life has presented them with unique opportunities, and they had the curiosity to find out where this path would lead them.

Each of the specialty storage options described in this article showcases the myriad of ways humans learn to protect what they find most valuable, so let’s find out how all these stories started.

Then Gardes had an idea that would change the course of his career. “I had a friend who had made a fortune in storage, so I told our principals that we should try it,” he says, admitting that he didn’t know anything about the industry at the time. He figured that joining the Self Storage Association (SSA) was a good place to start.

With Ballard’s help, Gardes managed to get his self-storage facility off the ground. Then came his next best idea. “We’re in New Orleans. This is a party town,” he says, “so I thought we may as well add a wine cellar.” That’s how Elmwood Self Storage and Wine Cellar was born. It has reliable gas generators that ensure the wine is kept at optimal temperatures, even during a natural disaster like hurricane Katrina. The power never went down during that storm, which is why Elmwood has customers from all over the country. They even have their own private entrance into the building. “It’s very high security,” says Gardes. “We have 150 security cameras, and there are multiple keypads to get in.”

Elmwood also ensures that wines are stored in optimal conditions. “We keep the cellar at 56 degrees, with 70 percent relative humidity at all times,” he says. They also record the temperature every minute of every day; if a potential buyer wants to verify the storage conditions, they can request a printout of the controlled climate the very minute they walk in the door.

The business model has proven to be successful beyond Gardes’ wildest dreams. However, he emphasizes that the reason wine cellars have worked so well for him is because of the facility’s geographical location. He wouldn’t advise going into wine storage on a site that makes no sense.

She explains that it’s crucial to get all elements of storage right to attract wine enthusiasts. “We offer 24/7 access to their lockers. We have good HVAC with four condensing and AC units and backups. Security is ironclad. You have to get through the gates, then through the doors, then to your own lock. It’s private, safe, and clean, and we make sure to keep the temperature at around 57 degrees, with 70 percent to 72 percent humidity.”

Wetzel adds that collectors treat wine like art. It’s something that is meaningful and personal to them. “I’ve met collectors who catalog their bottles like a museum curator. They want to ensure that humidity levels never dip. Different vintage wines require different types of insurance. These bottles are investments. They create memories; they can be a status symbol even. Clients aren’t just storing wine. We’re here to protect their most prized possessions.”

This goes back to identifying opportunities within a community. Wetzel and Vail Ranch’s employees weren’t the only ones using the postal station. The entire town had a need for closer personal mailboxes, shipping services, postage, and Amazon returns. They started drawing in visitors who weren’t in the market for self-storage, and Vail Ranch was top of mind when a need arose. “It was a good way to provide something the community needed, as well as to diversify our revenue and keep busy,” she says.

t’s membership renewal season again, so we wanted to take a few moments to remind you why being a member of the SSA is imperative to the success of your self-storage business.

It only seems fitting that August is the annual legislative issue of SSA Magazine to remind you that access to legal resources is key to running and protecting your facilities. SSA works tirelessly to provide the most current legal information available through our Legal Resource Center. Find answers to most of your legal questions that pertain to running storage facilities, including lien law updates, tax information, ADA requirements, and so much more.

With so many changes happening across the country with state laws affecting self-storage, you will want to keep up to date with how they affect your business. You will want to attend our state and regional events to hear one of SSA’s legal experts share information about what’s happening in your state with advocacy. Our legal team is working hard to prevent laws that could be detrimental to your business. Look at the states event calendar on the SSA website to see when an event will be held near you to attend.

If you can’t find the answer to your legal question in the resource center or an SSA publication, SSA also offers the Self Storage Legal Network (SSLN). Get exclusive access to legal hotline services.

The SSLN is available only to SSA members at an additional cost and is one of the best sources available for obtaining industry-related legal information.

SSA’s Legal Dream Team of Joe Doherty and Daniel Bryant serves as the industry’s primary advocates on legislative matters and government relations. They work closely with state associations, local politicians, and lobbyists to further the industry’s public policy agenda and safeguard the industry’s welfare. They work hard to ensure that laws are passed that benefit you. Our work is never done when it comes to protecting the industry.

Are you joining us in Vegas for our 50^th Anniversary Celebration 2025 SSA Fall Conference and Trade Show at our new venue, the Aria Resort & Casino? Be sure to attend the closing session on Fri., Sept. 5, featuring a legal update and Q&A session with all our legal all-stars. You won’t want to miss the chance to get answers to your pressing legal questions live and in person. Register at www.selfstorage.org/Events-Education/Events/National-Fall-Conference.

Don’t forget that members also get first-rate educational opportunities through the SSA, including our fall and spring conferences, value and acquisition courses, regional conferences and state meetings, the Certified Self Storage Manager Program (CSSM), and member-only events like the ski workshop.

SSA offers so much to its members, from legal information to advocacy to education to networking, so make sure to renew or join to be part of the association. We are stronger together.

ometimes, your best deals are the ones you never do.

We celebrate deals closed but not disasters avoided. When the FBI stops an attack, it rarely makes headlines. When a pilot delays takeoff to fix a mechanical issue, passengers complain. No one cheers when your website stays online because an engineer found a bug before deploying. But behind every “nothing happened” is someone who made the right call early.

Real estate works the same way. Everyone loves a closing photo, but the best investors I know take quiet pride in the deals they walk away from. They tell me about how they constantly pass, and sometimes they sound disappointed, but these investors recognize that it only feels like they are missing out on money. Over the life of a deal, the value of a closing fee can be wiped out quickly.

At TractIQ, we see this all the time. An investor will look at an aggressively priced asset in an “undersaturated market,” but when they look closer, they see the red flags: negative YoY rent trends, lack of incoming housing developments, high crime, the two competitive sites breaking ground down the street, the geographic barriers blocking them from population centers. It just takes a quick insight discovered early to realize you’re spending time on the wrong deal.

It’s not glamorous. There’s no commission or celebratory post. But it’s the right call, and it builds trust.

Warren Buffett said, “Rule No. 1 is don’t lose money. Rule No. 2 is don’t forget rule No. 1.” Saying no today protects your dry powder and your reputation so you can do the great deal that you find tomorrow.

Before my days at TractIQ, I ended up in a few deals that I later realized should have been a pass. Those were painful because they don’t just come with financial loss, they come with years of stress, distraction, and pressure that I carried home every night.

In the moment, your investors might yell, “Swing, you bum!” like they’re in the cheap seats at a Mets game, but later they’ll thank you for waiting on your pitch.

We built TractIQ to help you move fast, but more importantly, to help you move smart. Sometimes that means doubling down, other times it means stepping back.

Good investors say how many deals they’d underwritten. Great ones can find meaningful lessons from the winners, from the dogs, and from the “almost dones.”

If you genuinely review the thinking behind the 100 opportunities you pass on, you can 100 times your learning opportunities. How much stronger would your decision making be with 100 times the learning?

There’s no trophy for avoiding a bad deal, but there is credibility. There is investor confidence, and there is the freedom to go all-in when the right pitch finally comes. Because sometimes, your best deals are the ones you never do.