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

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Last Year Cap

6.9%

This Year Cap

7.1%

Cap Change

0.3%

Last Year Rating

A

This Year Rating

A

Rating Change

No change

Public Storage – 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

Public Storage

Cap Rates NNN
Last Year 6.9%
This Year 7.1%
Change 0.3%
S&P Rating CREDIT
Last Year A
This Year A
Change No change

Public Storage Net Lease: Secure, Essential Investment

Public Storage is one of the largest self-storage companies in the United States and a widely recognized name in the commercial real estate sector. This guide reviews cap rates, lease structures, tenant credit, and key due diligence considerations for buyers and sellers.

For 1031 exchange buyers, Public Storage NNN Properties and Public Storage Ground Lease Properties can provide exposure to the resilient self-storage sector. Lease structure, remaining term, rent escalations, and the quality of the underlying real estate can materially impact pricing, financing, and long-term resale value.

Investors often target Public Storage assets for:

  • Stable Self-Storage Demand
  • Strong Investment-Grade Credit Profile
  • Prime Urban & Suburban Locations
  • Attractive 1031 Exchange Compatibility

Public Storage Ground Lease Properties for 1031 Exchange Buyers

Public Storage Ground Lease Properties often trade differently than fee simple Public Storage assets. Buyers should carefully evaluate the lease structure, remaining lease term, renewal options, landlord responsibilities, rent increases, and reversion rights to better understand long-term investment risk and return.

Public Storage – 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

Public Storage Stock Price (NYSE: PSA)

PSA stock price by TradingView

Public Storage Investment Market Statistics

AVERAGE SALE PRICE

$12,500,000

BUILDING SIZE

55,000 – 95,000 SF

AVERAGE NOI

$675,000

LAND

3 – 6 Acres

$/SF RANGE

$185 – $325

LEASE TERM SHOWN

20 years

Public Storage Investor Snapshot (Quick Facts)

Origins & Growth (Past)

  • Founded in 1972 in California
  • Pioneer in self-storage industry
  • Expanded through acquisitions and development
  • Built nationwide storage facility network
  • Publicly traded REIT since 1981
  • Leading U.S. self-storage operator

Where Public Storage Stands Today

  • Extensive self-storage portfolio
  • Leading self-storage REIT
  • Millions of customer rentals
  • Primarily corporate-owned facilities
  • Expanding digital rental platform
  • Focus on operational efficiency

 

Where Public Storage Stands Today

  • Increased online rentals
  • Advanced digital platforms
  • Higher operational efficiency
  • Strong customer retention
  • Optimized property portfolio
  • Focus on occupancy growth
  • Benefiting from storage demand

Why investors buy Public Storage NNN Properties or Public Storage ground Lease Properties?

Pros (what buyers like)

  • Strong Investment-Grade Credit
    Public Storage has an investment-grade credit profile and a long operating history.
  • Resilient Self-Storage Demand
    Storage demand is supported by life events, business needs, and economic cycles.
  • Prime Real Estate Locations
    Facilities are typically located in dense urban and suburban markets with strong demographics.
  • Attractive Lease Structures
    Long-term NNN and ground leases appeal to passive investors and 1031 exchange buyers.
  • Market-Leading Operator
    One of the largest self-storage owners and operators in the United States.

Cons (what can bite you)

  • Lease Structure Variability
    Some assets may have NN or modified NNN leases with landlord responsibilities.
  • Limited Rent Escalations
    Certain leases provide minimal or fixed rent increases over time.
  • Property-Specific Performance
    Returns depend heavily on location quality, occupancy, and local storage demand.
  • Re-Tenanting Challenges
    Large self-storage facilities have specialized layouts that can limit alternative uses.
  • Interest Rate Sensitivity
    Higher interest rates can affect pricing and capitalization rates for self-storage investments.

Find out more

Public Storage NNN, Public Storage Net Lease, Public Storage Ground Lease, Public Storage Investment, Public Storage Cap Rate, Public Storage Real Estate, Public Storage Lease Term, Public Storage Tenant Credit, Self Storage NNN, Self Storage Investment, NNN Property, Ground Lease, Tenant Credit, Cap Rates, 1031 Exchange

Public Storage Background & History

Public Storage is the largest self-storage operator in the United States, with thousands of facilities serving residential and business customers nationwide. Since pioneering the self-storage industry, the company has built a portfolio of strategically located properties in high-density markets with strong barriers to entry.

Today, Public Storage facilities provide secure, climate-controlled, and drive-up storage solutions for individuals and businesses. Demand is supported by life events such as moving, downsizing, business expansion, and seasonal storage needs, making self-storage a resilient real estate sector.

Why Public Storage Matters to NNN Investors

Public Storage is one of the most recognized names in self-storage, operating a large portfolio of facilities across major U.S. markets. The business benefits from recurring rental income, diversified customers, and consistent demand driven by population growth and mobility.

Many properties occupy highly visible locations along major roads in densely populated areas. Investors value Public Storage assets for their institutional-quality real estate, strong market presence, and long-term operating stability.

What Buyers and Sellers Should Evaluate

For investors evaluating a Public Storage NNN property or ground lease, the investment thesis is typically driven by location quality, lease structure, and long-term real estate fundamentals. Key considerations include remaining lease term, rent escalations, occupancy levels, market supply, and the property’s visibility and accessibility.

Common searches include Public Storage NNN, Public Storage cap rate, Public Storage ground lease, Public Storage lease term, and Public Storage investment. Ultimately, value is influenced by site-specific characteristics, lease economics, and the property’s long-term positioning within its local market.

Corporate vs. Franchise | Store Count

Public Storage operates under a fully corporate-owned 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 strong credit transparency. In the U.S., Public Storage operates more than 3,400 self-storage facilities, making it the largest self-storage operator in the country. For investors, lease structure, location quality, market fundamentals, and remaining lease term are typically more important than the total number of facilities.

Public Storage Financial Snapshot

Public Storage operates as a publicly traded REIT and generates billions of dollars in annual revenue from its nationwide self-storage portfolio. The company maintains a strong balance sheet, significant liquidity, and consistent cash flow supported by recurring rental income. For net lease investors, Public Storage's investment-grade credit profile, financial strength, and market leadership are key factors supporting lease reliability and long-term income stability.

Public Storage Lease Types

Most single-tenant Public Storage properties are structured as long-term NNN or ground leases, although lease terms vary by asset. While many leases are true NNN, some may be modified NNN, with limited landlord responsibilities for items such as the roof or structure. As a result, investors should carefully review the lease structure, expense responsibilities, rent escalations, 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 Public Storage ground lease properties or fee simple Public Storage 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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