There are several methods to calculate the valuation of a self-storage property, including:

Income Capitalization: This method calculates the value of a property based on the income it generates. It involves dividing the net operating income (NOI) by a capitalisation rate (cap rate) to determine the property’s value. The cap rate is the ratio of the NOI to the market value of the property.

Direct Comparison: This method involves comparing the subject property to similar properties that have recently sold in the same market. By analyzing the sale prices and characteristics of these comparable properties, you can estimate the value of the subject property.

Cost Approach: This method estimates the cost to replace the existing structure and land, subtracting depreciation from that cost to arrive at the value.

Gross Rent Multiplier (GRM): This approach calculates the value of a property by dividing the gross rent by the sale price.

Feasibility Study: This approach is more comprehensive and is more useful for the development of new self-storage projects. It’s an in-depth analysis of the proposed self-storage facility’s financial performance. It includes a detailed study of the market, and competition, as well as an analysis of the proposed facility’s design, layout and operating costs.

Stronger job market: The Midwest has a relatively low unemployment rate and a strong job market, which can make it easier to attract and retain tenants.

It’s important to note that when valuing a self-storage property, it is important to consider the specific characteristics of the property and market. Each property is unique and its value will be affected by its size, location, condition, occupancy, competition, and other factors.

Also, it’s important to note that valuing a property is not a one-time process and the value of a property can change over time, so it’s important to evaluate the property regularly.