How to Sell a Self-Storage Facility in Florida

Short answer: To sell a self-storage facility in Florida, assemble a clean rent roll and operating history, separate what you are selling as real estate from what you are selling as an operating business, and get your property records ready for a buyer’s lender. Then market the facility confidentially to qualified buyers, negotiate a purchase agreement, complete due diligence, and close. Most main street sales take six to twelve months from listing to closing. I’m Ryan C. Winter, Business Broker with Truforte Business Group, based in St. Augustine and working with owners across Florida.

Self-storage sits between two worlds. Buyers and lenders underwrite it much like income-producing real estate, but that income depends on an operating business: marketing, rate management, collections, and the people who keep units rented.

Business Versus Real Estate in a Self-Storage Sale

Most self-storage sales include the land and buildings, so it helps to be clear about what each part of the price is paying for.

• The real estate. Land, buildings, paving, fencing, gates, and other improvements. This is usually the largest part of the value, and it is what a lender secures its loan against.
• The operating business. The tenant base and rent roll, the facility’s name and website, online rental and payment systems, management software and its data, any truck rental or retail sales, tenant protection programs, and the staff and procedures that keep units full.
• Personal property. Office equipment, kiosks, carts, and security and access systems.

How the price is allocated among these pieces affects taxes for both sides, so your CPA should review the allocation before you sign. Selling the property and the business together is the most common structure; my overview of selling a business together with its real estate covers the tradeoffs.

Some owners sell the operation and keep the property under a lease, or sell the property and stay on to manage. Each option changes who can buy and how they finance it. In Florida, the real estate license law covers brokering business enterprises as well as real property (section 475.01), and I hold a Florida broker license, so one engagement can cover both. Here is more on the difference between a business broker and a real estate agent.

What Buyers Look For in a Self-Storage Facility

• Occupancy trend. Physical and economic occupancy by month, showing whether the facility is stable, growing, or slipping.
• Street rates versus in-place rents. How current tenants’ rents compare with what new tenants pay, and your history of rate increases.
• Unit mix. Unit sizes, climate-controlled versus drive-up space, and boat or RV parking, compared with local demand.
• Collections. The aging of unpaid rent and how you handle lien sales.
• Other income. Fees, tenant protection, truck rental, and retail supplies.
• Physical condition. Roofs, doors, paving, drainage, gates, and cameras, backed by repair and capital spending records.
• Expansion room. Extra land or approvals to add units can add value where zoning allows it.
• Management load. Whether the facility runs with on-site staff, remote tools, or a third-party manager, and how much of it depends on you.

Buyers price self-storage largely on the net operating income the facility produces and on how confident they are that it will hold or grow. Every item above either supports that income or puts it at risk.

Florida Rules and Due Diligence Items

Lien Sales Under Florida’s Self-Storage Law

Part III of Chapter 83, Florida Statutes, governs self-service storage facilities, including the owner’s lien on stored property. Section 83.806 sets out the steps for enforcing that lien, including written notice to the tenant, advertising the sale, and conducting it in a commercially reasonable manner. Buyers will ask for your lien sale files to confirm you followed those steps, and your attorney should confirm your rental agreement form is current.

Property Taxes After a Change of Ownership

Florida limits yearly increases in the assessed value of nonresidential property, but under section 193.1555 a change of ownership or control resets the assessment to just value. That includes a sale of a controlling interest in the entity that owns the property. A buyer will underwrite taxes at the reset value, and your county property appraiser and CPA can help you understand the effect.

Environmental, Title, Survey, and Insurance

Lenders commonly require a Phase I environmental site assessment, and buyers will order a title search and a survey. In Florida, flood zone status, windstorm coverage, and roof condition drive insurance costs, so gather your policies, claims history, and any wind mitigation reports.

Tax Planning

Gains on real estate and gains on business assets can be taxed differently, and depreciation you have taken can come back into the calculation. Some owners use a 1031 exchange to defer tax on the real estate portion when they reinvest. See how a 1031 exchange works in a business sale, and have your CPA confirm what applies to you.

Preparing Your Facility for Sale

• Rent roll with unit numbers, sizes, rents, move-in dates, and balances
• Monthly occupancy and revenue reports from your management software
• Three years of profit and loss statements and tax returns
• Delinquency aging and complete lien sale files
• Property tax bills, insurance policies, and loss history
• Deed, survey, title policy, site plan, and any environmental reports
• Repair and capital improvement history
• Service contracts for software, gates, cameras, and maintenance
• The management agreement, if a third party operates the facility

Tie the rent roll to your bank deposits before a buyer does. Discrepancies found in due diligence are where most price renegotiations start.

Who Buys Self-Storage Facilities in Florida

• Local and regional operators adding a facility near the ones they already run.
• Private real estate investors, including those reinvesting proceeds through a 1031 exchange.
• Larger operators and institutional investors looking for well-located facilities with room to grow.
• Owner-operators who want to run a facility themselves.

Financing usually comes from commercial real estate lenders, and each lender has its own requirements for occupancy history, operating records, and the property’s condition.

How the Sale Works, Step by Step

1. Get a confidential valuation that addresses both the real estate and the operating business.
2. Decide what you are selling: property and business together, the business with a lease, or another structure.
3. Assemble the rent roll, financial, and property records.
4. Market confidentially to qualified buyers who sign a non-disclosure agreement and show they can fund the purchase.
5. Negotiate the purchase agreement: price, allocation, the due diligence period, financing contingencies, and your transition support. I usually go straight to a purchase agreement with contingencies rather than a letter of intent.
6. Work through due diligence: rent roll audit, environmental report, survey, title, appraisal, and inspection.
7. Close, then hand over gate codes, software access, tenant accounts, and vendor contacts.

The framework behind each step is in my guide to selling a business in Florida.

Related guides: selling a manufacturing business, selling a printing or sign business, and selling an IT company in Florida.

Frequently Asked Questions

Is a Self-Storage Facility Sold as a Business or as Real Estate?

Usually both. The land and buildings carry most of the value, but the rent roll, systems, and staff make up an operating business. How the price is allocated between them matters for taxes, so involve your CPA early.

Can I Sell the Business and Keep the Property?

Yes. You can sell the operation and lease the property to the buyer, which keeps rent coming to you. It narrows the buyer pool to those comfortable operating on a lease, so weigh it with your attorney and CPA.

Will Property Taxes Change for the Buyer?

Often, yes. Under section 193.1555, a change of ownership or control of nonresidential property resets its assessment to just value. Buyers build that into their numbers, and your county property appraiser can explain how it applies to your property.

Do Buyers Review My Lien Sale Records?

Yes. Buyers and their attorneys check that past lien sales followed the notice and sale steps in section 83.806, because mistakes can lead to tenant claims. Keep a complete file for every sale.

How Long Does It Take to Sell a Self-Storage Facility in Florida?

Most main street business sales take six to twelve months from listing to closing. A sale that includes real estate adds an appraisal, environmental review, and title work, so organized property records help keep it on track.

To find out what your self-storage facility could sell for, request a free, confidential business valuation or call me at (904) 789-1276.

• Category: Selling a Business, St. Augustine