Investor BlueprintSelf-storage underwriting
iPhone appApp
Sheet C-05CalculatorRev.

Self-storage lease-up calculator

How fast does NOI climb from today's occupancy to a stabilized facility? Enter the starting point, the target and the months in between to see the monthly path.

01Occupancy
02RentAverage per unit, monthly
Reached at stabilization
Also used for expense growth
03Income & expensesAnnual
Scales with occupancy
Held in today's dollars
Lease-up plan30 months
NOI today
$232K
66% occupied
Month 30
$445K
90% occupied
Units to lease
120net of move-outs
Net absorption
4.0units / month
NOI increase
$213Kper year, run-rate
Year-1 NOI
$275Kactual, not run-rate

Now put debt on it. Storage Underwriter runs this same lease-up through your loan, interest-only period and exit to show DSCR and IRR year by year.

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Occupancy and NOI by month

Annualized run-rate
$0$251K$502KStabilizedY0Y40%54%108%Y0Y4
NOI (annualized)Occupancy
YearRental revenueEGIExpensesNOIOcc. at year end
1$425K$431K$157K$275K76%
2$514K$520K$161K$358K85%
3$597K$603K$166K$437K90%
4$624K$630K$171K$458K90%

Horizon shown: 4 years. Annual figures are the sum of each month's results, as in the app's projection.

How it works

How the lease-up is modeled

The calculator uses the Storage Underwriter app's monthly function. For each month up to stabilization, occupancy moves in a straight line from today's occupied units to the target, and rent moves from in-place to market. After stabilization, rent grows at your growth rate. Expenses are fixed at today's dollars (the expense ratio × today's EGI) and grow from the first month. Tenant protection and fee income scales with occupied units.

Occupied(m) = current + (target − current) × min(1, m ÷ months) Rent(m) = in-place + (market − in-place) × min(1, m ÷ months)

Worked example: 30 months vs. 48 months

The default facility has 500 units, 66% occupied at $96 average in-place rent, targeting 90% at a $112 market rent. Its NOI today is $231,700. At stabilization the run-rate is $444,500 in month 30. That is 120 net new rentals, 4 a month.

Year30-month lease-up48-month lease-up
1$274,707$257,482
2$358,219$306,170
3$436,814$357,510
4$458,457$411,498
4-year total$1,528,196$1,332,660
Annual NOI (sum of months). Same facility, same stabilized NOI; only the lease-up period differs.

Stretching the lease-up by 18 months costs about $195,500 of NOI over four years, before any effect on debt coverage or the exit. That is why the lease-up period deserves as much diligence as the stabilized rent. Pressure-test it in the Deal Analyzer, where the sensitivity grid shows IRR at lower stabilized occupancies.

Evidence for the months and the target

  • Competitor occupancy and street rates in the trade area tell you whether demand exists at your target rent.
  • New supply under construction or permitted nearby competes for the same renters during your lease-up.
  • The facility's own history (move-ins and move-outs by month from the management software) shows the absorption it has achieved.
  • What changes under you (marketing, pricing, online rentals, repairs) should be specific enough that you could explain it to a lender.

Results are estimates based entirely on the figures you enter. They are not investment, lending, tax or legal advice.

FAQ

Questions

How long does it take a self-storage facility to stabilize?

It depends on local supply and demand, the facility's condition, management and marketing, and how far below stabilized occupancy it starts. There is no reliable universal figure. Underwrite your own market's absorption (competitor occupancy, new supply, population growth) and test a slower case, because a longer lease-up delays NOI and cash flow.

What is a stabilized occupancy for self storage?

The occupancy a facility can sustain over time once leased up, which varies by market. It is usually set below 100% because units turn over. Pick a target supported by comparable facilities, not the best month in the seller's history.

What is net absorption?

Net absorption is move-ins minus move-outs over a period. To go from 330 to 450 occupied units in 30 months, a facility needs 120 net new occupied units, or 4 per month on average, on top of replacing every tenant who leaves.

Why does year-1 NOI differ from the month-12 run-rate?

Year-1 NOI is the sum of the twelve monthly results, so it averages the starting and ending occupancy. The month-12 run-rate is the annualized NOI at the end of the year. Lenders and your cash flow see the sum, not the run-rate.

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