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Cost Segregation for Self-Storage Facilities

Self-storage buildings are simple. The site around them, with its paving, drive aisles, fencing, gates, lighting and security, is not. In a climate-controlled storage warehouse, the unit systems installed inside the shell are a separate asset from the shell itself.

Building life39-year
Short-life classes5 / 7 / 15-year
Site tourVirtual or onsite
Self-Storage property

Where the value is in self-storage

Self-storage is one of the asset types where our engineering team has deep experience.

  • Self-storage facilities
  • Self-storage warehouses

Drive aisles and paving dominate the site

A drive-up facility is mostly pavement by area. Drive aisles, aprons and customer parking are land improvements, generally 15-year property.

Security is a personal property system

Perimeter gate operators, keypads and access control, camera systems, individual unit alarms and the low-voltage infrastructure behind them are generally 5-year assets.

Unit systems are not the building

Interior partition and door systems in a climate-controlled facility are engineered, demountable products installed inside the shell. That makes them a different asset from the shell itself, and the study documents them as such.

Commonly reclassified components

Representative of what an engineered study identifies in this asset class. Actual components and recovery periods depend on the property and are documented individually in your report.

Gate operators, keypads and access control5-year
Camera, alarm and monitoring systems5-year
Demountable unit partition and door systems5-year
Climate control distribution to unit banks5-year
Office, retail and counter finishes5-year
Drive aisles, aprons and customer parking15-year
Perimeter fencing and security walls15-year
Site and canopy lighting15-year
Signage, landscaping and irrigation15-year
Storm drainage and retention15-year

What would a study find on your property?

Send the property details. Engineering prepares the estimate, and you receive a written, fixed-fee proposal within 24 to 48 hours.

Self-Storage cost segregation questions

Still have a question? Ask Engineering.

Is a study worth it on a smaller facility?

Often, because so much of a storage facility is site work and security. The engineering-prepared estimate tells you what a study would find on your facility before you commit to anything.

We are expanding an existing facility. Study the expansion or everything?

Usually both, in one engagement. The expansion is a new construction study, and the original facility can be a look-back study that catches up the deductions you missed through Form 3115, without amending a return.

Does climate-controlled versus drive-up change the outcome?

It changes the mix. Drive-up facilities lean more heavily on paving and site work; climate-controlled warehouses add interior partition systems and HVAC distribution to the unit banks. Both carry substantial short-life populations.

Get a Commercial Savings Estimate

Fixed-fee proposal in 24 to 48 hours.

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