Self Storage Development ROI Calculator

New storage development requires 200–400 bps spread between yield-on-cost and exit cap.

Site sq ft

Building sq ft

Land $/sf

Construction $/sf

Soft cost %

Stabilized NOI

Yield on cost %

0.11%

Total dev cost

$7,960,500

Value @ 6.0% cap

$14,166,667

How the math works

Hard = land + construction. Total = hard × (1 + soft). YoC = NOI / total.

100k × $10 + 65k × $85 = $1M + $5.5M = $6.5M × 1.22 = $7.93M. NOI $850k / $7.93M = 10.7% YoC.

How to Use

Enter site sq ft.
Enter building sq ft.
Enter land $/sf.
Enter construction $/sf.
Enter soft cost %.
Enter stabilized noi.
Read yield on cost %.

Frequently Asked Questions

Self-storage development economics?

Land: $4–25/sf (suburban–urban). Vertical construction: $55–95/sf (single-story drive-up), $90–150/sf (multi-story climate-controlled). Soft costs: 18–25%. Total development cost: $80–180/sf gross building area. NRA factor (net rentable area / gross): 75–85%. Development yield-on-cost: 9–12% target, exit cap 5.5–7.5% — 200–400 bps spread typical. Lease-up: 18–36 months to stabilization. Best markets: <2 sf storage per capita, growing residential, supply-constrained zoning.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.