Property type
Self Storage
Educational overview for 1031 exchange planning. Not investment advice.
Category: Self StoragemixedAsset class: Self Storagefee_simpledstfund
Overview
Self Storage 1031 Exchange — Educational Overview
Self-storage facilities can be a replacement-property category in 1031 exchanges. Educational considerations include occupancy patterns, local supply, and operating expense ratios.
General characteristics
Educational Considerations
- Local supply/demand
- Climate-controlled vs. drive-up
- Management technology
- Capital improvement cycles
Potential benefits
- Recession-resilient demand\n- Short leases allow re-pricing
Potential risks
- Local competition can impact occupancy
Management requirements
Active operator or third-party management common.
Liquidity considerations
Direct: moderate. DST: very low.
Tax considerations
Generally eligible for 1031 exchange when held for investment.
Common investor profiles
Owners seeking flexible-rate income.
Educational information only. The content on this page is general education and is not tax, legal, accounting, or investment advice. Consult your own CPA, attorney, and licensed investment professionals before making any decision related to a 1031 exchange or Delaware Statutory Trust.