MICHIGAN · NAICS 531130
Michigan self-storage projects pencil on supply analysis within a three to five mile radius, absorption pace, and rent benchmarks, with seasonal boat and RV storage adding a Michigan-specific demand layer. Studies translate competitor square footage per capita, climate-controlled mix, and rent trends into projections, and reconcile site economics against ramp and refinance.
FEASIBILITY TRIGGER
Self-storage is special-purpose under SOP 50 10 8, so studies analyze supply within a three to five mile radius, absorption pace, and rent benchmarks against a defined trade area.
Michigan generated 125 SBA-disbursed self-storage loans between FY2010 and FY2026, worth $128.1 million in approved 7(a) and 504 financing at an average of $1.0 million per deal. Ranked #7 of 38 states for self-storage SBA volume, the state captures 3.6% of national self-storage dollars. 53.6% of the loans ran through 7(a) with 504 covering the remainder; 5 approvals have posted since FY2024.
| Disbursed loans (FY2010–FY2026) | 125 |
| Approved volume | $128.1 million |
| Average loan size | $1.0 million |
| 7(a) share | 53.6% |
| Approvals since FY2024 | 5 |
| State rank by loan count | #7 of 38 |
Among the 89 seasoned loans in this segment (approvals FY2010–FY2021), 0.0% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for self-storage is 1.1%, against 7.3% across all industries. That performance runs below the national benchmark for this asset class, a credit-positive signal for lenders.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 0.0% adverse-resolution rate below the national self-storage benchmark of 1.1% supports the credit story for well-underwritten Michigan projects in this class. Across 125 SBA loans averaging $1.0 million, that track record does not eliminate the need for a third-party feasibility study, but it means a rigorous study reinforces rather than defends the projections.
Every Michigan self-storage project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Michigan projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, and the state's Collateral Support Program can layer up to 40 percent collateral coverage onto qualifying deals. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Midwest stabilized occupancy of 77.9 percent in late 2025 posted the strongest regional gain in the country, seasonal boat and RV storage adds a Michigan-specific demand layer, and Live Oak Bank's dedicated national vertical closed $111.7 million in calendar 2025.
For a national view of this asset class, see our self-storage SBA feasibility overview, and read our related analysis in the self-storage lending research on our blog. The SBA self-storage feasibility study tests pipeline supply, verified competitor occupancy and the monthly lease-up reserve.
Compare neighboring markets: Massachusetts, Minnesota, Texas.
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