It’s not uncommon for self storage investors and those in the industry orbit to have a limited understanding of cap rates. Certainly, they may know what’s considered a “good” cap rate but may not have a full mastery of the equation that created it. In this article, we’ll define and demystify cap rates, apply it in a real-world example and offer guidance on their importance in self storage investment decision-making. Cap rate, short for capitalization rate, is a core measurement used to estimate a property’s ROI. Imagine having a crystal…
The Basics: Cap Rates and Self Storage Investments
