10/08/2026
Did you know that self-storage facilities are one of the BEST property types for cost segregation?
Here's a recent (Illustrative) example proving why.
We worked with a client who owns a self-storage facility in the Midwest. They purchased it for $2.4 million. Like most owners, they were depreciating the whole thing over 39 years, but self-storage properties are loaded with assets prime for accelerated depreciation. Think fencing, security systems, paving, signage, and specialty electrical.
After a cost segregation study, we reclassified about $650,000 worth of assets into accelerated (5, 7, and 15-year) categories. With 100% bonus depreciation permanently available, our client received a big deduction in year one instead of waiting decades to see the benefit.
The best part? Self-storage tends to have a lot of site improvements and pretty simple building structures. This combination usually means an even bigger reclassification than owners expect.
If you own a self-storage property and have not considered cost segregation, it's worth the conversation.
The numbers are almost always in your favor!