Congratulations! You’re a self-storage owner with one or several facilities under your belt. You now have operational experience and are wondering: Should you grow your portfolio? And if so, how should you go about it?
You want to be strategic, but what does that really mean? A host of questions start racing through your mind. Will your next facility be as profitable as the last? Can you continue operating the same way, or do you need to scale differently? What can you actually afford to purchase, and where should you begin looking?
These are all important questions to consider before diving into your next acquisition or development. Let's review seven critical considerations to explore.
Before considering another self-storage property, ask yourself why you want to grow your portfolio. Maybe you want to:
Increase cash flow
Prepare for retirement
Increase facility value for a potential exit
Transition the business to children and build generational wealth
Capitalize on economies of scale
Related:Self-Storage Real Estate Acquisitions and Sales: February 2026
Understanding your primary motivation will help guide strategic growth. A self-storage portfolio built to generate passive income may look very different from one designed to maximize resale value or support a generational transition.
I often hear investors say, “I’ll buy when interest rates come down” or “I'll wait for the right time.” But this mentality could seriously hinder your self-storage expansion strategy.
The reality is, interest rates will always fluctuate. What doesn’t appear often is the right deal in the right market at the right price, thus creating your ideal opportunity. When the market may feel saturated, good deals tailored to small operators or first-time portfolio builders are rare. If you’re waiting for the stars to align perfectly, you may be watching from the sidelines for a long time.
For a smaller self-storage owner or investor, it can be difficult (sometimes near impossible) to compete with private-equity groups that have a lower cost of capital and access to cheaper debt. However, there are ways to level the playing field.
Timing. There are cycles when private-equity firms pull back, and it’s often when their performance is down or it’s harder for them to meet the high returns their investors expect.
Strategy. Private equity often needs to exit a deal within five to seven years while meeting a strict return threshold. You might be able to take a longer-term view or accept a deal with stronger cash-on-cash returns over internal rate of return.
Related:Systems and Accountability: A 12-Month Plan to Achieve Consistent Growth as a Self-Storage Investor
Flexibility. Smaller self-storage operators can move faster, take on challenging properties and work creatively on deals that don’t meet private equity’s strict requirements.
Despite these strategies, challenges await. Lenders will scrutinize your financials, occupancy and cash flow just as closely. However, if you’re an experienced self-storage operator with a stable property, lenders are often more comfortable with extending credit to you, even in tighter economic environments.
When considering a self-storage portfolio expansion, you’ll need to choose between acquisition or ground-up development. Acquisitions tend to be less risky, more predictable, faster to cash flow and easier to underwrite due to their proven, existing performance. If you can find a facility where you can add value through rate increases, operational improvements or physical expansion, that’s often the smartest route.
Development, on the other hand, is a three-to-five-year process before you start seeing real cash flow. While this can offer higher returns, it comes with greater risk and higher upfront costs. One situation where a new build may make sense is if you own land or another self-storage facility nearby and can gain efficiencies in management, marketing or maintenance.
Related:CubeSmart, CBRE Investment Management Form $250M Strategic Joint Venture to Invest in Self-Storage
Regardless of your chosen approach, always buy good underlying real estate. In a booming market, you might get away with a mediocre location. In a tough market, it’ll cost you.
You might be wondering where you can even find a good self-storage facility to buy. There are two primary channels:
Brokers. These professionals are the lifeblood of deal flow. Get to know experienced professionals who specialize in self-storage within your target market. A good broker can provide access to off-market opportunities and help you avoid costly underwriting mistakes. They can also present deals you’d never see on the open market and help you become a more competitive buyer.
Direct-to-owner. This route can work, but it’s rarely as simple as cutting out the self-storage broker. These professionals spend years building trust with owners, so making a direct call out of the blue and expecting to convince them to sell to you is extremely unlikely. If you decide to go this route, be prepared to put in extensive time that may cost you other opportunities in the long run. Don’t be penny-wise but dollar-foolish.
Growing a self-storage portfolio is exciting, but don’t underestimate the amount of work involved, especially if you’re self-managing. Expansion isn’t just “more of the same.”
You may have heard the saying, “Taking care of one child is a lot of work, but two children are more than twice the work.” The same concept holds true with scaling a self-storage operation.
Each facility has its own repairs, customers, vendors, local competition, etc., and these elements won’t always line up neatly. Make sure you’re truly ready to take on the added complexity. Some questions to ask yourself include:
Can your current systems handle the additional load?
Will you need new software, staff or vendors?
Are you ready to scale your customer service and maintenance standards?
Don’t grow because of pride. Do so because you’re prepared and it makes financial sense.
Even if you think you’ll never sell it, you should build or buy a self-storage facility as if you will someday. What makes a business attractive to a future buyer?
Strong location with easy access
Large enough scale to interest institutional buyers
Stable occupancy and rent growth
Good curb appeal and physical condition
Market demographics that support long-term demand
The self-storage portfolios that command top dollar are those that are built with an exit in mind from the very beginning.
Growing a self-storage portfolio isn't about building or buying more for the sake of size. It’s about executing a thoughtful, strategic expansion plan that aligns with your goals and capabilities. Stay patient and data-driven. Surround yourself with a strong team including brokers, lenders, legal experts and operational support. Reinvest in technology, customer service and facility upgrades to stay competitive.
Focus on being smart, not just bigger. When done right, self-storage portfolio growth can help you achieve financial freedom, prepare for family succession or build a profitable business worth selling one day.
Michael Morrison is the owner and broker-in-charge at Superior Capital Advisors, a Columbia, South Carolina-based self-storage advisory and investment firm. He has 12 years of experience and has facilitated hundreds of millions of dollars in transactions. Morrison also invests in or operates six self-storage facilities and has completed three ground-up developments. To reach him, email [email protected] or call 803.600.0602.
Michael Morrison
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