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CubeSmart NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

CubeSmart

Last Year Cap

7.0%

This Year Cap

7.3%

Cap Change

0.3%

Last Year Rating

BBB

This Year Rating

BBB

Rating Change

No change

CubeSmart – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate
1031 Exchange
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Credit (what net-lease buyers care about)

Credit Snapshot

CubeSmart

Cap Rates NNN
Last Year 7.0%
This Year 7.3%
Change 0.3%
S&P Rating CREDIT
Last Year BBB
This Year BBB
Change No change

CubeSmart Net Lease: Secure, Essential Investment

CubeSmart is a nationally recognized, investment-grade self-storage REIT and one of the largest self-storage operators in the United States. This guide reviews cap rates, lease terms, tenant credit, and key due diligence considerations for buyers and sellers.

For 1031 exchange buyers, CubeSmart Ground Lease Properties are important to compare against fee simple CubeSmart assets, as lease structure can materially impact pricing, financing, and long-term resale value.

Investors often target CubeSmart assets for:

  • Stable Rental Income Potential
  • High-Quality Self-Storage Locations
  • Investment-Grade Tenant Credit
  • Attractive 1031 Exchange Compatibility

CubeSmart Ground Lease Properties require careful comparison of rent escalations, remaining lease term, extension options, and residual land value versus fee simple ownership.

CubeSmart Ground Lease Properties for 1031 Exchange Buyers

CubeSmart Ground Lease Properties often trade differently than fee simple CubeSmart assets. Buyers should carefully evaluate lease structure, remaining lease term, renewal options, landlord responsibilities, rent escalations, and reversion rights to understand long-term risk and return. Strong market demographics, facility quality, and local self-storage supply are also key factors that influence investment performance and resale value.

CubeSmart – Credit Trend (S&P vs Moody’s)

Tenant_Rating_Trend

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank
1 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2022 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
2 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2023 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
3 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2024 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
4 admin2 2025 03:43 PM admin2 2025 03:43 PM 7eleveninc 7-Eleven, Inc. 2025 Baa2 A Lower Medium Grade Upper Medium Grade 5 6
5 admin2 2025 03:43 PM admin2 2025 03:43 PM 99centsonlystoresllc 99 Cents Only Stores, LLC 2022 Caa2 CCC+ Substantial Risk Substantial Risk 2 2
TenantKey Tenant Year Moody SP Moody_Grade SP_Grade Moody_GradeRank SP_GradeRank

CubeSmart Stock Price (NYSE: CUBE)

CUBE stock price by TradingView

CubeSmart Investment Market Statistics

AVERAGE SALE PRICE

$20,000,000

BUILDING SIZE

60,000 – 110,000 SF

AVERAGE NOI

$1,200,000

LAND

2.0 – 5.0 acres

$/SF RANGE

$160 – $300

LEASE TERM SHOWN

20 years

CubeSmart Investor Snapshot (Quick Facts)

Origins & Growth (Past)

  • Founded in 2004 through the merger of multiple self-storage companies
  • Expanded nationwide through strategic acquisitions
  • Grew portfolio across major U.S. markets
  • Focused on high-quality self-storage facilities
  • Invested in digital rental technology
  • Became a leading U.S. self-storage REIT

 

Where CubeSmart Stands Today

  • Nationwide storage portfolio
  • Leading self-storage REIT
  • Strong occupancy levels
  • Corporate-operated facilities
  • Expanding digital rentals
  • Focus on operational efficiency

Where CubeSmart Stands Today

  • Growing digital rentals
  • Increased automation
  • Online reservations
  • Enhanced customer experience
  • Portfolio optimization
  • Operational efficiency
  • Benefiting from storage demand trends

Why investors buy CubeSmart NNN Properties or CubeSmart ground Lease Properties?

Pros (what buyers like)

  • Strong tenant credit
    Investment-grade REIT with a proven operating history
  • Resilient self-storage demand
    Needs-based business supported by moving, downsizing, and business storage
  • Quality real estate
    Facilities in high-density markets with strong demographics
  • Attractive lease structures
    Long-term NNN or ground leases appeal to passive and 1031 exchange buyers

Cons (what can bite you)

  • Lease structure variability
    Some assets are modified NNN with landlord responsibilities
  • Market competition
    New storage supply may pressure occupancy and rental rates
  • Limited rent growth
    Some leases include modest or fixed rent escalations
  • Re-tenanting challenges
    Purpose-built self-storage facilities have limited alternative uses

Find out more

CubeSmart Background & History

CubeSmart is one of the largest self-storage real estate investment trusts (REITs) in the United States, operating a nationwide portfolio of self-storage facilities. Since its formation in 2004, the company has expanded through acquisitions, strategic development, and third-party management, establishing a strong presence in major metropolitan markets.

Today, CubeSmart provides storage solutions for residential and commercial customers, offering climate-controlled units, vehicle storage, and business storage. Demand is supported by recurring life events such as moving, downsizing, home renovations, and business inventory needs, creating stable occupancy and recurring rental income.

The company continues to invest in digital rental platforms, automated operations, and customer experience initiatives while selectively expanding its portfolio in attractive growth markets.

Why CubeSmart Matters to NNN Investors

CubeSmart is an investment-grade self-storage REIT with a nationally recognized brand and a diversified portfolio of facilities across the United States. Its business model is built on recurring monthly rental revenue, supported by a broad customer base and the resilient demand characteristics of the self-storage sector.

Many CubeSmart facilities occupy highly visible locations in densely populated markets with strong demographics and barriers to new development. Combined with disciplined portfolio management and operational efficiency, these characteristics make CubeSmart an attractive net lease tenant for long-term investors.

What Buyers and Sellers Should Evaluate

For investors evaluating CubeSmart NNN properties, a CubeSmart net lease, or a CubeSmart ground lease, the investment thesis is generally centered on real estate quality, tenant credit, and lease structure. Buyers often focus on location fundamentals, remaining lease term, rent escalations, and long-term market demand rather than brand recognition alone.

Common searches include CubeSmart real estate, CubeSmart cap rate, CubeSmart lease term, CubeSmart tenant credit, and CubeSmart ground lease. Ultimately, property value is influenced by site-specific characteristics, lease economics, occupancy performance, and the facility’s position within its local market.

As demand for self-storage continues to grow, the strongest CubeSmart locations are typically those with high occupancy, excellent visibility, convenient access, and limited nearby competition. Buyers and sellers should evaluate each property individually, including demographics, barriers to entry, lease language, landlord responsibilities, and long-term cash-flow durability before making an investment decision.

Corporate vs. Franchise | Store Count

CubeSmart operates under a fully corporate-owned and managed model, with no franchised locations. For NNN and ground lease investors, this means leases are generally backed by the corporate entity, providing a clear lease obligor and reducing credit ambiguity. In the U.S., CubeSmart owns or manages more than 1,500 self-storage facilities, making it one of the nation's largest self-storage operators. For investors, tenant credit, lease structure, remaining lease term, and facility location are typically more important than total store count.

CubeSmart Financial Snapshot

CubeSmart operates as a publicly traded REIT and generates billions of dollars in annual revenue from its nationwide portfolio of owned and managed self-storage facilities. The company maintains a strong balance sheet, healthy liquidity, and recurring cash flow supported by stable rental income. For net lease investors, CubeSmart's investment-grade credit profile, financial strength, and leadership in the self-storage industry are key factors when evaluating lease reliability and long-term income stability.

CubeSmart Lease Types

Most single-tenant CubeSmart properties are structured as long-term NNN or ground leases, although lease terms vary by asset. While many are true NNN leases, some properties may have modified NNN structures with limited landlord responsibilities, such as the roof or structural components. As a result, investors should carefully review lease language, expense responsibilities, rent escalations, renewal options, and remaining lease term before underwriting and pricing the asset.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing CubeSmart ground lease properties or fee simple CubeSmart assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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