We often get asked what makes a good self storage deal or where is the best place to build a new facility. Neither question has a straight answer. The key is to analyse each opportunity on its own merits, be honest with interpretating your findings, and use some simple prerequisites as an initial go/no checklist.

Below, we break down the key characteristics that separate a good self storage deal from an average one.

1. Location, Exposure, and Catchment Demographics

Like all property, location remains the single most important factor – and one of the only attributes that simply cannot be fixed. For self storage, the right location is defined by convenience, visibility, and catchment demographics rather than street frontage or retail foot traffic.

A good self storage facility has a strong, growing residential or mixed-use catchment, within a 3-5 Kilometre radius, or 15-minute drive time. This is considered to be the distance most customers will travel within. Convenience is key. The best-performing assets are those embedded within established suburbs experiencing steady population growth, urban densification, and/or high apartment living, ideally with higher-than average household income.

In addition, main road exposure is marketing gold. Storage facilities can often be landmarks and you would be surprised to hear of how often a customer got to know about storage simply due to driving past it.

Key indicators of a strong location include:

  • Population growth at or above the state average.
  • A high proportion of small dwellings (units/townhouses or small houses).
  • A popular area to live with a high frequency of movers.
  • Main road exposure or visibility to passing car traffic and/or public transport routes.
  • Good access for moving trucks.
  • Limited competing facilities within the primary catchment area (more on this below).

Put simply, a site that’s easy to find, easy to access, and surrounded by a growing catchment with ongoing housing movement is one that will continue to perform.

2. Existing and Proposed Self Storage Competition

Even the best-located facility can underperform if the local market is oversupplied. A thorough supply and demand analysis is critical in assessing any deal or development project.

Each catchment is different, and the rate of supply will be dependent on the size of the population. In metropolitan markets, a healthy supply rate is 2-3 units per 100 people of population in the identified customer catchment area. In a regional market with a smaller population, a healthy rate may fall within 3-4 units per 100 people. Whilst there are balanced markets with high rates of supply, anything higher than say 5 units per 100 people is at risk of saturation or pricing pressure.

When assessing a potential acquisition or development site, important considers include:

  • How many facilities exist within the primary customer catchment area.
  • How full are the competing facilities. Are they discounting to attract customers?
  • How many new self storage facilities are planned or under construction.
  • The mix of operators and types of existing facilities. Investigate whether the local market is made up of independent operators or major brands. Are the facilities old or new and what type of storage units do they offer.

A good self storage catchment is one where demand is stronger than supply, with the likelihood that the market can absorb more space. Also consider whether existing facilities are tired and inefficient, as there may be scope for a more modern, well-managed facility to better complete for customers.

3. Quality of the Facility

The physical quality of the asset directly affects revenue potential, cost of maintenance, and customer retention. A good self storage facility features a modern and efficient layout, all-weather docking areas and well designed access.

Look for:

  • Wide driveways and easy vehicle circulation.
  • A mix of unit sizes catering to both personal and business users.
  • Undercover docking areas to protect users and movers from the elements.
  • High security, good CCTV coverage, automated pin-code access, and strong fencing.
  • Minimal exposure to flood risk or other environmental constraints.

Facilities that provide a good customer experience, offering easy access and cleanliness, generally maintain higher levels of occupancy and may even sustain higher storage fee rates.

4. Income and Operating Metrics

A good deal is underpinned by established revenue. A great deal is one where there is revenue upside available through optimised performance. While the level of achieved occupancy is often the first metric purchasers discuss, the scope for increased revenue through enhanced operational performance is where the real value sites.

The key metrics to look for include:

  • Occupancy rate: Strong assets consistently sit around 85–90%. Achieving occupancy above 90% may indicate that there is scope for fee rate growth.
  • Average achieved rate per square metre: Compare to market benchmarks from Cushman & Wakefield’s Self Storage Performance Indicators (SSPI) or similar datasets.
  • Discounting levels: Check whether frequent specials are being offered as it may indicate soft demand.
  • Ancillary revenue: Is there additional income being generated from merchandise sales and late/cleaning fees? Are customer goods protection solutions being offered?
  • Marketing: What is the annual marketing budget? Is there scope to increase performance by engaging a marketing team that knows how to drive self storage results.
  • Operating expense ratio: Efficiently run facilities often achieve margins of 60-70% (Net Operating Profit as a percentage of gross revenue). Smaller facilities may be at the lower end of the range. If the facility is not within this range, is there scope to optimise performance to hit this benchmark?

A facility that offers stable, well-documented financials with room for further revenue optimisation is worth considering.

5. Development or Expansion Potential

The best self storage deals often include future upside, whether through expansion, reconfiguration, or redevelopment.

Check the site’s zoning, unused land, or height potential. Could mezzanine levels or additional buildings be added? Are there underutilised areas suitable for vehicle storage or ‘drop down’ boxes?

Equally, some older facilities offer value through refurbishment and upgrade strategies. Upgrading security, repainting, or simply improving digital marketing can quickly lift performance.

An asset that offers both stable income and tangible growth pathways is typically more attractive than one that’s fully optimised but has limited upside.

6. Exit Strategy and Liquidity

Finally, every good investor considers the end game.

A good deal allows flexibility – whether to refinance, expand, or divest. Assets located in key metropolitan markets or growth corridors will typically maintain stronger buyer demand.

Investors should also assess how the asset aligns with their broader strategy:

  • Are you seeking a core, income-producing investment?
  • Or a value-add play with redevelopment potential?

Understanding this from the outset ensures that decisions around capital expenditure, management structure, and financing are aligned with the desired exit strategy.

Conclusion: The DNA of a Good Self Storage Deal

A good self storage deal is the sum of many parts: strong location, limited competition, quality improvements, sound operations, and realistic pricing. It is supported by data, not hype, and underpinned by the fundamentals of convenience, accessibility, and steady demand.

As the sector continues to evolve, the best opportunities will go to those who combine local insight with disciplined analysis. Whether you’re acquiring an existing facility or developing a new one, success lies in understanding not just what the numbers say, but what drives them.

Ultimately, a good self storage deal is one that performs today and is positioned to perform even better tomorrow.