Are you giving a climate control DISCOUNT?
Extra Space Storage released their 2026 pricing guide, and it hides a deep, dark secret…
It’s a $400,000 underwriting mistake, and I want YOU to catch it first.
Everyone knows climate-controlled storage costs more to build, and commands higher rents…
But almost nobody runs the actual math on what that premium should be versus what markets are actually charging.
The data I found reveals exactly which markets are massively under-pricing their climate control, and which operators are leaving a fortune on the table.
Stick with me, because this one insight could transform how you underwrite your next deal.
But first, quick market updates you need to know:
📊 What’s Happening in Self-Storage Right Now:
Extra Space Storage Launches 2026 Pricing Guide – I caught this article on the weekend, and it is FULL of valuable data and insights you can carry into the new year. Check it out here!
Self-Storage Owner and Congressman Troy Downing Discusses AI Literacy on NBC’s ‘Meet the Press’ – Troy Downing, CEO and cofounder of real estate investment firm AC Self Storage Solutions LLC and a Republican member of the U.S. House of Representatives, recently appeared on NBC’s “Meet the Press” to discuss artificial-intelligence (AI) literacy. Check it out at Inside Self Storage.
Follow me on Instagram! I’m putting lots of work into improving the SVN social media presence, and every follow counts. I’m delivering you the same industry insights and commercial real estate finance tips, straight to your feed. Follow SVN here!
Now, back to that climate control discovery…
Here’s what jumped off the page when I analyzed the pricing data:
Climate-controlled storage costs an average of 17% more
than standard units nationwide.
That’s roughly the premium most investors build into their proformas,
But here’s where it gets interesting:
In some markets, climate control only commands a 9-12% premium. In others, it’s pushing 25-30%.
Same product. Same value proposition to customers.
Wildly different pricing power.
Translation: A lot of operators are under-pricing a product that many customers desperately want.
I know of one operator in Orlando who’s charging a 13% climate control premium.
Market data shows competitors at 22%.
That kind of “small” pricing gap could easily represent six figures in lost annual revenue!
Even worse, when you try to (re)finance that operation and the bank catches it…
That gap could kill your debt coverage ratio and cost a point on your rate.
Over a 10-year hold, that facility lost $380,000+.
To wrap it all up:
Markets with hot climates (think Florida, Texas, Arizona) should be commanding 25-30% climate control premiums, but many operators are still using the “national average” of 17%.
And lenders are starting to notice this in their underwriting.
If you’re analyzing a deal and the climate control premium is below 20% in a Sun Belt market, one of two things is true:
-
There’s a massive value-add opportunity in immediate rent increases, or
-
There’s something fundamentally wrong with the market/facility
Either way, it’s not “average,” and your lender won’t treat it as average either.
Here’s to finding the hidden opportunities,
Cody