Equity Funding Blog

Funding for Self Storage Businesses


The market for self storage facilities is booming. Even though the average size of new homes is around 2,500 square feet, up 15% over the past 20 years, 10% of the country rents self storage units. Why? Because families are out of space, an increasing number of adult children are moving back home, and a credit crunch is limiting families’ mobility to bigger houses. None of these trends show signs of slowing down.


This translates into a $30B industry that is growing at 3% a year, with unit occupancy steady at 90% even as rents are rising 3% a year.


The question is: How can you get financing to take advantage of these demographics and market opportunity? Here are your options:

– With a proven track record of positive net revenues, seek a traditional bank loan.

– Go for an SBA loan. While the paperwork involved can be formidable, SBA lenders are hungry for solid businesses like self storage facilities.

– Consolidate your current loans to getter a lower rate, using the spread to finance growth or acquisition.

– Use a variety of alternative lenders who can leverage your operational and financial strength to provide funds for construction, upgrades, or expansion.

– Seek an equity partner who will swap funds you need to grow for a percent of ownership in your company.


You’re an expert in your business but it helps to have a partner walk with you though the fundraising process. Typically, your local bank is a good place to start. If you live in a larger metropolitan area, seek non-debt funding from the variety of equity investor groups in your area.

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