What Is the Occupancy Rate In Self-Storage Units?

Occupancy rate is one of the most important metrics in the self-storage industry. It measures how full a facility is and directly impacts revenue, valuation, and long-term profitability. High occupancy rates indicate strong demand and healthy cash flow, while low occupancy alerts owners to pricing, marketing, or unit mix problems. At Merck General Contracting, we help developers design self-storage facilities that achieve strong occupancy through strategic planning and efficient construction.

How Occupancy Rate Is Calculated

Occupancy rate is calculated by dividing the number of rented units by the total number of available units. For example, if you have 300 units and 255 are rented, your occupancy rate is 85%. Some operators calculate occupancy based on square footage rather than unit count, which provides a more accurate picture when unit sizes vary significantly. Both methods offer valuable insights into facility performance.

Why Occupancy Rate Matters

Occupancy rate directly affects net operating income and overall facility valuation. High occupancy means higher revenue, stable cash flow, and increased ability to raise rental rates. From a development perspective, occupancy trends determine which unit sizes are most in demand and whether climate-controlled spaces are needed. Investors and lenders also view occupancy as a primary indicator of financial health and market competitiveness.

What Is Considered a Good Occupancy Rate?

Nationwide, a healthy self-storage occupancy rate typically ranges from 85% to 95%. New facilities often take 18 to 36 months to stabilize and reach target occupancy levels, depending on local competition and marketing efforts. In strong growth areas like Waco, facilities with the right unit mix and modern amenities often stabilize faster. Climate-controlled units typically rent more consistently year-round, helping maintain higher occupancy.

Factors That Influence Occupancy Rates

Several variables affect occupancy performance. Location plays a major role—facilities near residential developments, universities, and commercial hubs tend to achieve higher and more consistent demand. Unit mix is also critical; offering too many large units or too few small units can slow lease-up. Pricing strategies, online visibility, security features, and climate control availability all influence consumer decisions. Facilities with easy access, strong branding, and modern amenities actively outperform outdated or poorly located properties.

Improving Occupancy Rates Through Facility Design

Proper facility design has a direct impact on long-term occupancy. Wide drive aisles, clear signage, convenient loading zones, and efficient layout improve customer experience. Climate-controlled buildings attract tenants willing to pay premium rates and maintain steady occupancy even in seasonal slowdowns. High-quality security systems, including cameras, access controls, and LED lighting, also increase customer confidence. At Merck General Contracting, we help developers optimize design features that enhance leasing performance from day one.

Monitoring Occupancy Trends for Better Decision-Making

Tracking occupancy levels monthly helps owners identify patterns and adjust strategies in real time. If specific unit sizes consistently stay full, increasing availability of those units can improve revenue. If certain units remain vacant, pricing adjustments or targeted marketing can help. Monitoring occupancy by building, floor, or unit type provides even more insight for long-term planning.

Build a Facility Designed for High Occupancy

A well-designed, strategically planned facility achieves higher occupancy and maintains long-term profitability. Merck General Contracting specializes in self-storage construction that maximizes revenue, efficiency, and tenant satisfaction. Contact Merck General Contracting today to plan a facility that leases up faster and stays full longer.