Self-storage has been a very popular property type for cost segregation for many years. It ties closely to the boom in multifamily property development we have seen over the last decade or so. Most self-storage properties fall in the $1M-$5M basis range, but basis can stretch into the 10s of millions depending upon property size, location, and unique features.
There are certain features that make a self-storage facility a strong candidate for cost segregation. For instance, does the subject property have climate-controlled lockers? These specialty lockers are eligible for accelerated depreciation. How are the interior walls between the lockers constructed? If they are demountable and therefore movable, then there is a possibility that the walls themselves may be considered a personal property asset, and therefore be depreciated at a greater rate.
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