1. What is a Self Storage Value Calculator?

Definition: This calculator estimates the value of a self storage facility based on its net operating income and capitalization rate multiplier.

Purpose: It helps investors, appraisers, and facility owners determine the market value of self storage properties.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( V \) — Storage facility value (USD)
• \( NOI \) — Net operating income (USD)
• \( M \) — Capitalization rate multiplier (dimensionless)

Explanation: The net operating income is multiplied by the cap rate multiplier to estimate the property's value based on its income potential.

3. Importance of Storage Facility Valuation

Details: Accurate valuation is crucial for investment decisions, financing, sales transactions, and property tax assessments.

4. Using the Calculator

Tips: Enter the annual net operating income in USD and the capitalization rate multiplier (default 10). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is Net Operating Income (NOI)?
A: NOI is the property's annual income minus operating expenses, excluding financing costs and income taxes.

Q2: How is the multiplier related to cap rate?
A: The multiplier is the inverse of the cap rate (e.g., 8% cap rate = 12.5 multiplier).

Q3: What's a typical multiplier for self storage?
A: Multipliers typically range from 8 to 12 (cap rates 8.3% to 12.5%), varying by location and property quality.

Q4: When would I use a higher multiplier?
A: Higher multipliers (lower cap rates) apply to premium properties in strong markets with stable income.

Q5: Does this include the land value?
A: Yes, this income approach values the entire property including land and improvements.