In this video, Ryan Gibson, CIO of Spartan Investment Group (SIG), speaks about underwriting unit mix for self-storage. Rent per square foot should be analyzed to understand how your facility compares to the market. Rent per square foot is calculated on an annual basis by taking total revenue for the year divided by net rentable square footage.
It's important to do a market study to determine rent per square foot for competitor properties and consider the average size of units, condition of comparable properties, the sophistication of the operator, and what unit sizes have the most vacancy or yield the lowest rent.
