Ask Dale

Photo of DaleQuestion: What are current cap rates?

One of the questions I am often asked is, “What are the current cap rates for self storage?”

While buyers and sellers set the prices at which the buyer will buy and the seller will sell, in today’s market looking at the terms for lending will often predict the cap rates at which properties will trade.

I have written an article that recently appeared in the Mini Storage Messenger which looks at the impact lending has on cap rates.

In the article I calculate cap rates for the same property under two different lending scenarios to demonstrate how significant those parameters are as they relate to value.

Feel free to download the article which contains the detailed explanation.

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