Frequently Asked Questions

Spring and early summer are the best seasons for self-storage because more people tend to move during this period.

The secret is in the 30-day lease. Customers don’t feel tied down by long-term commitments, and sites are able to moderately adjust lease rates more frequently than other real estate assets.

Population growth and migration patterns influence demand for storage space. The more people move, the more they need storage solutions. The beauty of storage is that what often starts as a short-term solution becomes a long-term necessity.

A key driver of self-storage is America’s dynamic homeownership market. Recent increases in interest rates have slowed the frequency of moves, but the sector has been through similar cycles in the past.

Technology disrupts all businesses, and self-storage is no different. We use sophisticated revenue management systems to adjust rents dynamically, similar to the airline or hotel industry, capitalizing on seasonal fluctuations and local demand.

Regions with stable populations, strong economic activity, and high barriers to entry offer the best opportunities for investment.

Dahn Corporation uses data analytics, market research, and demographic trends to identify high-demand self-storage locations.

Self-storage demand is influenced by factors such as population growth, downsizing, and small-business storage needs, making it somewhat less tied to macroeconomic indicators like employment rates or consumer spending. Commercial and residential real estate rely more directly on job growth, economic expansion, and corporate leasing activity. Source: JLL, “Self Storage Outlook,” 2022.

We encourage you to give us a call and ask questions. We want to do business with people who are curious about self-storage and share in our investment outlook. We have many long-term investors, so “fit” is as important to us as it should be to you.

Yes, we used debt instruments from regional and national commercial lenders, life companies, and CMBS. We typically use 50-60% debt leverage on our properties, and seek interest-only options in the early years of loan term.

Dahn Corporation typically structures investor partnerships through LLCs or syndications to provide investors with limited liability and tax advantages.

Dahn Corporation structures its investments primarily through syndications, where investors collectively fund the acquisition of self-storage properties.

The minimum investment varies, but typically starts at around $50,000, depending on the specific investment opportunity.

Investors typically join through a limited partnership or syndication model, where they contribute capital in exchange for equity in self-storage assets.

Exit strategies include selling the facility to institutional investors, refinancing, or holding long-term for consistent cash flow.

Dahn Corporation implements revenue management strategies, value-add improvements, and operational efficiencies to increase property values over time.

A well-performing self-storage facility typically maintains an occupancy rate between 85-95%, depending on the market and competition. We do not target 100% occupancy because you always want a unit available for the next person who will pay the highest market price.

Key profitability factors include location, occupancy rates, pricing strategies, operating costs, and demand trends.

Historically, the self-storage industry has shown resilience during economic downturns as people need storage during relocations, downsizing, and life transitions.

We manage our investments to maximize both annual revenue and appreciation. Everyone knows that the better the property performs, the more income can be distributed. But equally important is that when more income is created, the value of the property grows, which can be realized for investors at a future refinance or sale.

The most common misconception is that self-storage is an “easy” real estate asset to manage because expense ratios tend to be lower compared to other real estate. Actually, self-storage is very management intensive because rates are changing daily and tenants are moving in and out regularly. The lower expense ratios are primarily due to lower repairs and maintenance costs compared to multi-family and office.

Self-storage typically offers lower tenant turnover, fewer maintenance costs, and higher resilience during economic downturns compared to residential real estate. Source: National Association of Real Estate Investment Trusts (Nareit), “Self-Storage: A Resilient Asset Class,” 2021.

Self-storage has historically been a good passive income investment because it combines steady cash flows and long-term appreciation potential.

Self-storage investments historically have had lower operational costs, consistent demand, and strong resilience during economic downturns compared to other real estate assets.

Dahn Corporation is a pioneering developer and asset manager of self-storage investments, beginning with our first project in 1972. To date we have developed, acquired, and managed over 120 facilities across the country.