Big-Box to Climate Self-Storage Conversion Engine

Underwrite converting vacant big-box retail buildings into modern climate-controlled self-storage. Model net rentable square footage ($1.75/sqft), conversion buildout ($42/sqft), and cap rate arbitrage.

Building Footprint & Conversion Costs

Gross Building Area (Sq Ft)

Net Rentable Efficiency (%)

Avg Climate Rent ($ / sqft / mo)

Stabilized Occupancy (%)

Vacant Acquisition Price ($)

Storage Unit Buildout ($ / sqft)

Staff, HVAC & Property Tax ($ / mo)

Stabilized Exit Cap Rate (%)

Conversion Arbitrage Verdict

CLASS A CLIMATE STORAGE

Net Operating Income (NOI)

$712,400 / yr

Stabilized Asset Valuation

$11,873,300

Net Equity Creation (Value-Add Spread)

+$6,343,300 Net Equity

Total cost basis: $5.53M (Acquisition + Buildout) creates $11.87M institutional valuation.