Bottom line. Small-market storage facilities ask 7.0% to 7.7% cap rates, well above the 5.75% that institutional buyers pay. Our read: they are small, drive-up and face many competitors. The number that matters is economic occupancy, the share of rent actually collected: on the two listings that show both, it trails the units-rented figure by 6 and 10 points. Street rates fell 1.6% in the year to July 2026, so the broker's "rate upside" is the wrong direction.
1Four listings, as published
| Facility | Sq ft | Units | Occupancy | Asking | Per sq ft | NOI | Cap |
|---|---|---|---|---|---|---|---|
| Shermans Dale, PA (built 2023, drive-up) | 15,925 | 113 | 91.2% units, 85.3% economic | $1,750,000 | $110 | $122,698 | 7.01% |
| York, PA (built 1978, drive-up) | 8,200 | 46 | 74% now, "above 90%" historically | $600,000 | $73 | about $46,260 implied | 7.71% |
| Portsmouth, OH, three sites | 23,935 | 276 | 92.4% units | $2,500,000 | $104 | $177,215 | 7.09% |
| Miami, FL (opened 2023, managed by a public REIT) | 79,007 | 831 | 94% by area, 84% economic | Unpriced | — | Not shown | — |
Sources 1 to 4. York's first-half 2026 revenue was $37,058, which annualizes to about $74,000 gross; its "historically above 90%" became 74% after one delinquency sweep. It has 19 competitors within 3 miles.
2What the market says
| Benchmark, 2026 | Figure | Source |
|---|---|---|
| Investor survey cap rate, Q2 2026 | 5.75% | Cushman & Wakefield; up 23 basis points in the half; Class B and C widening |
| Street rate, July 2026 | $16.47 a sq ft, down 1.6% | Yardi Matrix; move-in rents about 40% below move-out rents |
| New supply under construction | 2.1% of stock | Yardi; starts down 20% from the first half of 2025 |
| Public REIT occupancy, Q2 2026 | 94.2% | Extra Space; operating costs 28.1% of revenue |
| Smaller operator costs | 34.8% of revenue | SmartStop, six months to June 2026 |
| Loan terms, Apr to Jul 2026 | 59% LTV, 1.30x coverage, 6.5% fixed | Lev, broker-reported quote medians |
Sources 5 to 9. At 59% leverage and 6.5% debt over 30 years, a 7% cap covers the loan payment about 1.5 times, above the 1.30x lenders ask, with little room for a rent drop. The survey's 5.75% describes institutional product, not a 46-unit drive-up site.
3Two distressed sales
| Sale | Sq ft | Price | Per sq ft | Against |
|---|---|---|---|---|
| Broadway Station, Denver (receiver sale, 2026) | 52,850 | $6.95M | $132 | About $6M bank loan in default |
| Boat and RV storage, Valley View, TX (sold by the foreclosing bank, announced Jan 2026) | 175,254 | Not disclosed | — | Built 2023; 451 units |
Sources 10 and 11.
4How we would price Shermans Dale
| Step | Figure |
|---|---|
| Gross potential at 100%, from the listed NOI and occupancy | Reconstruct from the rent roll, not the flyer |
| Economic occupancy to underwrite | 85%, the collected figure, not 91% |
| Street rate trend | Flat to down 2% a year; no "rate upside" |
| Costs for a small drive-up site | 33% to 36% of revenue |
| Price at a 7.5% to 8% cap on re-underwritten NOI | Below the $1.75M ask unless the rent roll beats the flyer |
5Before you bid
- Collections, not unit countsBank statements and the management software's rent roll for 12 months.
- Competition within 3 milesFacilities and square feet per person; York has 19 competitors.
- Rate roll-downModel in-place tenants moving out at higher rents and new ones arriving 40% lower.
- DelinquencyHow many units are 30 and 60 days late; auctions pending.
- DebtSize the loan at 1.30x coverage and today's rate before deciding the price.
- SupplyPermits filed within 5 miles; construction is slowing but not stopped.
Sources
- Crexi, State Storage Co, Shermans Dale PA: crexi.com
- Crexi, Partners Self Storage, York PA: crexi.com
- Crexi, Stack and Go portfolio, Portsmouth OH: crexi.com
- Crexi, Extra Space-managed facility, Miami: crexi.com
- Cushman & Wakefield self-storage investor survey, Q2 2026, as reported by Modern Storage Media: modernstoragemedia.com
- Yardi Matrix, August 2026: yardimatrix.com
- Extra Space Storage Q2 2026 results: extraspace.com
- SmartStop 10-Q, June 30, 2026: sec.gov
- Lender quotes, Lev: lev.com
- Broadway Station receiver sale, BusinessDen, Apr 2026: businessden.com
- Valley View TX foreclosure listing, Marcus & Millichap, Jan 2026: marcusmillichap.com
Listing figures are the brokers' as of the date read. Derived numbers are DHI Capital's arithmetic. Not investment advice.
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