Commercial Self-Storage Lending

Self-Storage Property- Self-storage property generates its income solely on the month-to-month fees generated for the use of its storage facilities for consumers.

Self-Storage may be used for standard household goods as well as recreational vehicles or even commercial items such as semi-trucks. Since self-storage properties earn their income based on month-to-month lease income, they have a high rate of turnover and thus

an analysis of the last two years cash flow is critical for commercial financing options to be determined. One of the difficulties with financing self-storage properties is determining whether the self-storage units themselves are considered “real property”, such as cemented cinder blocks and solid doors, or “equipment”, such as pre-fabricated walls that are merely bolted into the ground. This determination will make a significant difference in the market-value of the property.