Self-storage financing

Self-storage loan packages and lender matching

Self-storage sits in the specialty bucket. Leases are month to month, so lenders underwrite occupancy and street rates rather than lease term. Bridge lenders often take lease-up and expansion deals; permanent lenders want stabilised history.

The lender's lens

What lenders scrutinize on self-storage.

Occupancy and rate history

Physical and economic occupancy over time, and street rates versus in-place rates.

Unit mix

Size mix, climate-controlled share and how it fits local demand.

Management

Third-party or owner-operated, and how revenue management is run.

Supply in the trade area

Competing facilities nearby and in the pipeline.

Expansion plans

Added units or conversions, with budget and lease-up assumptions.

What goes in the package

  • Unit mix and occupancy report
  • Rent roll or rate report
  • T-12 operating statement
  • Trailing occupancy and rate trend
  • Expansion or capital budget if applicable
  • Appraisal
  • Sponsor and operator track record
  • Trade area supply and rate comps

Metrics lenders size on

DSCROften 1.25x–1.40xVaries by lender, loan program and market.
LTVOften 60%–75%Varies by lender, loan program and market.
Debt yieldOften 8%–10%Varies by lender, loan program and market.

Illustrative ranges, not a quote or a commitment from any lender.

Terms used on this page

Questions

What do lenders look at for self-storage?

Occupancy and rate history, unit mix, management, and competing supply in the trade area.

Does Dori support self-storage deals?

Yes. Self-storage falls under specialty, which is a supported property type.

Bridge or permanent for self-storage?

Lease-up and expansion deals often go to bridge lenders. Stabilised facilities with history are candidates for permanent debt.

Get started

One closed deal covers the year.

Start on the introductory rate and see a package come out of a real deal this week.

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$360 for the first month, then $1,000. Cancel anytime.