Self-Storage Business Economics: Unit Mix, Occupancy & Revenue Management

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Turn a unit list into rentable square feet, see how the space is split by size and compare the street rate per square foot of small and large units.
• Measure occupancy three ways (by units, by sq ft and by money) and see why the money view is the lowest.
• Compare what tenants pay with today's street rate, apply an existing-customer rate increase to eligible tenants and estimate what it earns after some tenants move out.
• Roll occupied units forward month by month, measure the move-out rate and turn it into an average length of stay and the rent one new tenant brings in.
• Add up quarterly revenue, then compare quarters and the full year with realized rent per occupied sq ft and revenue per available sq ft.
• Add the management fee, total the operating expenses, find the NOI and express both as % of revenue and per rentable sq ft.
• Forecast how a new facility fills up quarter by quarter, cap it at stabilized occupancy, find when it reaches the target and chart the lease-up curve.
• Value the stabilized facility at a cap rate, test how sensitive the value is to the cap rate and check whether building Ridgeview II creates value.