Do CMBS lenders underwrite self-storage differently than other CRE?

Yes. Self-storage underwriting focuses heavily on revenue per available square foot, move-in/move-out velocity, and rate management strategy. Conduits view climate-controlled units and diverse unit mixes more favorably than single-product facilities.

Can I refinance a ground-up self-storage facility into CMBS?

Yes, once stabilized. Ground-up self-storage typically takes 18-36 months to reach 85%+ occupancy. After stabilization, it is treated identically to any stabilized facility for CMBS purposes. The construction and lease-up phases are typically funded with bridge or construction loans.

What DSCR do self-storage facilities typically achieve?

Stabilized self-storage facilities commonly achieve 1.50x-2.00x DSCR due to low operating expenses and high margins. At 65% LTV, most facilities significantly exceed the 1.30x CMBS minimum, qualifying for the tightest available conduit spreads.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for self-storage at 65% LTV?

Stabilized self-storage facilities at 65% LTV can exit bridge debt into permanent CMBS non-recourse financing with fixed rates typically priced 6.75%–9% for stabilized assets, with the strongest sponsors at 60% LTV reaching 6.25% for 10-year terms. Facilities with 85%+ physical occupancy, diversified unit mixes, and 12 months trailing NOI qualify for express conduit underwriting and the tightest available spreads.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. CMBS Range: 6.25% – 11%+ (typical 6.75% – 9%)as of Mar 19, 2026

Self-Storage

Self-Storage CMBS Bridge Exit to Permanent

Exit your self-storage bridge loan into permanent CMBS at 65% LTV. Non-recourse, fixed rates from approximately 6.25% on the strongest stabilized deals (typical 6.75%–9%), 10-year terms. Stabilized facilities with 85%+ occupancy fast-tracked.

Minimum 30-35% equity required. Self-storage operators with stabilized facilities at 85%+ occupancy, holding bridge or construction debt they need to refinance into permanent non-recourse terms.

Discuss Your Self-Storage Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.25% – 11%+ (typical 6.75% – 9%)

Term

5-10 years fixed

Recourse

Non-recourse

DSCR

1.30x minimum

Closing Speed

30-45 days

Min Loan Size

$3M

Loan Products

CMBS

FIT ASSESSMENT

When Is This the Right Fit?

This financing is right when your self-storage facility has completed lease-up, achieved 85%+ physical occupancy for at least 6-12 months, and generates NOI supporting 1.30x+ DSCR. Bridge loans in the 8-14% range are designed to be temporary, and every month you hold bridge debt beyond stabilization is lost income. CMBS provides the lowest-cost permanent debt for self-storage with non-recourse terms banks cannot match. If your facility is still in lease-up below 80%, continue the bridge or explore a rate cap extension until occupancy stabilizes.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Exit bridge debt at 8-14% into permanent CMBS (typically 6.75%–9%, with the strongest deals reaching 6.25%)

Non-recourse terms protect personal assets on stabilized facilities

Self-storage DSCR typically exceeds 1.5x, qualifying for best pricing

Low management intensity and capex make self-storage an ideal CMBS asset

Assumable debt increases facility value at disposition

ALTERNATIVES

Strategic Alternatives

CMBS Balloon Maturity Refinance

If your existing CMBS loan is approaching maturity rather than a bridge exit

Learn more

Warehouse Industrial Bridge Refinance

If your self-storage facility includes warehouse or flex components

Learn more

Mixed-Use CMBS 65% LTV

If your self-storage facility has retail or office components

Learn more

Frequently Asked Questions

Most conduits require 12 months of stabilized operating history at 85%+ occupancy. Some will underwrite with 6 months trailing if the facility demonstrates a clear stabilization trend and the sponsor has a track record with self-storage assets.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your self-storage deal with the right capital source — right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.