Self-Storage Asset Classes

• Class A

  Class A self-storage properties represent the highest quality facilities in their market and MSA. These are generally newer properties built within the last 15 years with relatively low vacancy rates. Class A self-storage facilities have prime locations within their market and typically command the highest rent with little or no deferred maintenance issues.

• Class B

  Class B properties are a step down from Class A and are typically older, and may or may not be professionally managed. Rental income is usually lower than with Class A storage assets, and there may be some deferred maintenance issues. Even so, Class B facilities are reasonably well maintained and are often seen as value-add investment opportunities to investors — who acquire these facilities at a higher cap rate than comparable Class A properties.

• Class C

  Class C self-storage properties are typically more than 20 years old and are often located in less desirable locations. Class C properties usually require varying levels of renovation, typically regarding the building infrastructure. Class C storage facilities generally have the lowest rental rates in a market compared to similarly located Class A or B assets.