Is an asset class which is relatively new in Latin America, but growing. There are new brands, such as U-Storage which has grown rapidly in Mexico and Colombia. Some real estate funds own self-storage assets such as Fibra Storage (Mexico), Pactia (Colombia). The asset class is evolving and becoming more sophisticated, as there are now market examples of projects operating and that have a performance history.


Purpose built self-storage projects – these are projects that are built from the ground-up as self-storage facilities. They are efficiently built to complete the function they are designed for.

Self-storage conversions – these can be older industrial or office buildings that are adapted for use as self-storage. The age and usable life of these projects may vary, but may be in sought-after, infill locations.

Approaches, Relevance

Cost – Some self-storage projects in Latin America are conversion projects that are originally of a building that is older. This should be taken into account when estimating the usable life of the property in the cost approach.

Sales comp or market approach – due to the lack of sales of Latin American self-storage projects, this may be a very difficult approach to complete.

Income capitalization – this is a useful approach, as it does take into account the performance of the property. The approach may be difficult to apply when a property is not stabilized, in the process of stabilization, or during a period of market uncertainty such as the recent pandemic and subsequent market fluctuation.

DCF – most projects are bought and sold on this method, and it is considered to be the most effective in determining value. The DCF method allows for the projection of income and expenses – and can be adjusted for future fluctuations in supply and demand in a market.

Value Impacting Factors

Traffic, sales – traffic often determines how much sales a retail space can produce

Expenses – the historical expenses of the property should be compared to those of other properties. To have expense comparables at hand is key in completing a valuation.

Important Inputs

Occupancy – The product is in the process of acceptance by the consumer market. Occupancy rates are increasing, but the stabilization curve appears to take more time currently, due gradual acceptance in the market.

Discounts, concessions – these are important to take into account when modeling the DCF of a self-storage facility. Effectively they incentives for renting spaces given by the owner that decrease the income that the property produces.

Demand equilibrium – in Latin America it is difficult to gauge demand, as there are few projects – which usually have high occupancy rates. Often, the product type is in the process of being accepted, and demand equilibrium could be achieved in the distant future. On the other hand, some markets have a limited high-demographic population – which could make demand equilibrium very sensitive.

Recent Trends

– Expansion of regional platforms in Latin America.
– Growing knowledge of the asset class and consumer acceptance.
– Effects of pandemic and economic downturn on delinquencies.


Appraisal Report – Narrative

A. Value considerations – summary.
B. Scope, limitations.
C. Description of site.
D. Description of improvements.
E. Scope.
F. HBU – Highest and best use.
G. Valuation methods.
H. Reconciliation.
I. Certification

Notable Markets




CDMX – Mexico City
Nuevo Leon, Monterrey


Lima, Miraflores
Lima, San Isidro
Lima, Santa Cruz


San Jose, Escazu
Panama City