What is GPR in the Self Storage Industry? (v2)

Gross Potential Revenue in Self Storage

Gross Potential Revenue (GPR) is a widely used metric used for self-storage real estate investment decisions. While it can be helpful for investment decisions, when it comes to tactical pricing decisions, it is often misused and has led to pricing mistakes by some operators. GPR provides an estimate of the potential revenue for a facility…

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Still Using GPR for Pricing Decisions? Here’s the Math

GPR for Pricing Decisions? A GPR Downside Math Example

In a past blog, we reviewed the definition of Gross Potential Revenue (GPR) and how it provides useful information for evaluating investment decisions. We also highlighted how GPR can provide misleading information when used to support pricing decisions. Here, we present a detailed example of why and how GPR should not be used for pricing.…

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Use With Caution: GPR Disadvantages

GPR Disadvantages: Use With Caution

In our previous blog, we discussed how Gross Potential Revenue (GPR) is a useful metric for evaluating self-storage investments. However, we also cautioned there are GPR disadvantages, especially when using it for pricing decisions (or revenue management). In fact, using GPR can be counter-productive and even misleading, resulting even in reduced revenues and profits. Here we…

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