Self Storage Loans
Self Storage Loan Rates - Rates updated October 3rd, 2022
|Loan Product||Rates (start as low as)||LTV|
|5 Year Fixed Rates||5.96%||Up to 75%||Get Free Quote|
|7 Year Fixed Rates||5.88%||Up to 75%||Get Free Quote|
|10 Year Fixed Rates||5.73%||Up to 75%||Get Free Quote|
We are pleased to offer self-storage loans for the purchase or refinance of self storage properties nationwide. Select Commercial specializes in self-storage and mini-storage financing. Self storage is an industry where rooms, lockers, containers, and/or units are rented on a short term basis to individuals and businesses, usually on a month-month basis. Most self storage customers use self storage facilities when faced with a death in the family, a divorce, a relocation, or when faced with downsizing. These units provide temporary storage until the renter is able to move the items to a more permanent location. Self storage locations often contain three types of storage: regular inside units, climate controlled units (heated and air-conditioned), and outdoor storage for boats and vehicles. Units are locked, allowing the renter privacy and protection from theft. Units are most often windowless, constructed of corrugated metal, and contain roll-up doors for easy access. Many of these properties are contain security guards and/or security cameras for customer safety. Many self storage owners like these properties because management is relatively easy and expenses can be kept to a bare minimum, as most self storage properties don’t require lots of utilities or management. Self storage properties can be found these days in almost all urban, suburban, and rural locations. Let us help you start, purchase, refinance or grow your self storage business! Our minimum loan size is $1,000,000.
We are a nationwide commercial mortgage broker specializing in all types of commercial mortgage loans, apartment loans, multifamily loans, and credit tenant lease loans.
Our Commercial Real Estate Loan Benefits
Self Storage Loan rates start as low as 5.73% (as of October 3rd, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 75% LTV (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Self Storage Loan Outlook for 2021 - Commercial Mortgage Rates
The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.
The coronavirus pandemic caused major disruptions in financing for many single use properties, including self storage loans. Many locations were forced to close and remain closed for many months. Other properties were able to survive by operating outdoors or by offering pickup and delivery services. Financing for self storage loans in 2021 is available for those businesses that were able to survive the pandemic, remain in business, and demonstrate a path to profitability post pandemic. Lenders in 2021 want to offer self storage loans for those businesses that are deemed good credit risks and are able to make their payments. Self storage loans for businesses that have not returned to profitability in 2021 will found it very difficult to obtain financing.