Self-storage is an operating business wrapped around real estate.
Study physical and economic occupancy, street rates, achieved rents, tenant churn, concessions, delinquency, local supply pipeline, visibility, access, unit mix, security systems and management platform. Property taxes and insurance can materially change post-closing economics.
Where a property includes significant operating equipment or other assets, tax advisors should review how purchase-price allocations and real-property definitions interact with the exchange.