Self Storage Loans
Self Storage Loan Rates - Rates updated April 16th, 2025
| Loan Product | Rates (start as low as) | LTV | |
|---|---|---|---|
| 5 Year Fixed Rates | 6.61% | Up to 75% | Get Free Quote |
| 7 Year Fixed Rates | 6.64% | Up to 75% | Get Free Quote |
| 10 Year Fixed Rates | 6.78% | 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 $1,500,000.
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 6.78% (as of April 16th, 2025)
• 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
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Self Storage Loan Outlook for 2025
After a volatile few years, the self-storage sector is entering a new phase in 2025, defined by cautious optimism and strategic opportunity. The surge in demand during the early 2020s, followed by market recalibration in 2023 and stabilization in 2024, has left investors more focused on fundamentals and long-term positioning.
Limited new development is one of the most defining characteristics of the current landscape. High construction costs, extended permitting timelines, and elevated interest rates have dramatically slowed new facility deliveries across most markets. While this has constrained new supply, demand for self-storage continues to rise—driven by shifting demographics, urbanization, downsizing trends, and increased consumer need for flexible space solutions.
With new construction tempered, existing facilities are well-positioned to benefit from rising occupancy and gradual rent growth. Many properties that weathered the recent downturn are now stabilized and producing predictable income, giving both lenders and investors increased confidence in underwriting new self-storage loans.
Market Trends and Investment Dynamics
Demand fundamentals remain strong across primary, secondary, and tertiary markets. As millennials opt for smaller urban dwellings and baby boomers continue to downsize, storage needs are expanding. Additionally, e-commerce growth is creating new use cases for commercial storage, adding another layer to the demand profile.
Operational sophistication is playing an increasingly important role in driving value. Facilities that implement digital marketing, online rentals, automated gate access, and dynamic pricing strategies are outperforming. Investors entering the space in 2025 should prioritize properties with modern tech stacks—or plan to upgrade them—as these tools are now essential for both tenant acquisition and revenue management.
Financing Outlook for 2025
The lending environment remains challenging but active. Interest rates remain above pre-pandemic norms, but many lenders continue to favor self-storage due to its strong performance metrics, recession resistance, and high operating margins. SBA loans remain especially attractive for both first-time and experienced buyers, offering low down payments, extended amortization, and flexible underwriting that accounts for future projections.
Other financing options, such as bridge loans, conventional bank loans, and seller financing, are also being used strategically—particularly for acquisitions requiring renovations, expansions, or operational turnarounds. Investors should evaluate all financing structures based on cash flow needs, timeline, and exit strategy.
Opportunities and Strategic Considerations
Investors looking to enter or expand in 2025 should focus on location first. Market selection is more important than ever, with oversupplied areas struggling despite broader demand. Data-driven analysis of population growth, rental trends, and existing competition is key to identifying viable opportunities.
For developers, 2025 may be the year to secure entitlements and control land—without necessarily rushing into construction. Working with patient sellers or structuring phased commitments can help mitigate financing risk while laying the groundwork for a 2026–2027 delivery, when interest rates may stabilize further and market confidence continues to grow.
Finally, the reduced competition in today's market creates a rare window to acquire quality assets at realistic pricing. Many operators have exited or paused growth, allowing prepared buyers to step in with favorable terms and long-term upside.
Final Thoughts
The self-storage sector in 2025 presents one of the most compelling opportunities in commercial real estate. A combination of constrained supply, steady demand, and strategic financing tools makes this an ideal moment for investors to build or expand portfolios. With the right market, the right plan, and the right lender, long-term success in self-storage is well within reach.