At Legacy Built, we focus on storage unit investing because it combines reliable real estate fundamentals with meaningful tax advantages. In Tucson Arizona, those advantages are even more impactful. Investors are drawn to this market for steady demand, favorable pricing, and the ability to use tax depreciation to improve overall investment performance.
How Depreciation Works in Self Storage Real Estate
Depreciation allows real estate investors to deduct the cost of a property over time, even while the asset itself may increase in value. In self-storage real estate, many parts of a facility qualify for depreciation schedules that move faster than traditional commercial buildings. This creates a powerful planning opportunity for investors focused on long term wealth building.
Storage unit investing benefits from structures, systems, and site elements that can often be depreciated sooner than expected. This is one of the reasons self-storage continues to outperform many other forms of real estate. Our long-standing results are outlined in our historical performance, which reflects decades of disciplined execution.
Accelerated and Bonus Depreciation Benefits
Accelerated depreciation allows certain components of a self-storage facility to be written off over a shorter period of time. These components may include electrical systems, climate control infrastructure, doors, fencing, and site improvements. Bonus depreciation can further enhance this benefit by allowing a larger portion of those deductions earlier in the ownership cycle.
For investors, this often means reduced taxable income during the early years of ownership while the property continues to generate operational revenue. This structure helps explain why many investors view self-storage as a strategic real estate investment. We explain how these tax strategies fit into our broader investment philosophy in our article on controlling risk while maximizing returns.
Why Tucson Arizona Strengthens Depreciation Strategies
Tucson Arizona offers a unique advantage when it comes to depreciation focused investing. Construction costs are generally lower than many large metro areas, which allows projects to be built efficiently without sacrificing quality. This pricing environment supports clearer separation of depreciable components within a facility.
The area continues to see population growth from nearby cities such as Phoenix, Oro Valley, Marana, Sahuarita, and Green Valley. This steady growth supports long term storage demand while giving investors the benefit of tax efficiency. We break down these market dynamics further in our post on why Tucson continues to grow.
Construction Types That Support Faster Write Offs
Many Tucson self-storage facilities feature single story layouts, metal construction, and extensive exterior improvements. These design choices often increase the portion of a project that qualifies for accelerated depreciation. When combined with thoughtful planning, investors can benefit from both operational efficiency and tax timing.
Because Legacy Built manages development, construction, and operations internally, tax considerations are part of the planning process from the very beginning. This integrated approach is rooted in our history and the values that have guided our business for generations, which we share in more detail throughout our company story.
Why Investors Partner with Legacy Built in Tucson
Legacy Built has focused exclusively on self-storage real estate since 1979. With nearly $550 million entrusted to us by more than 150 investors, our projects have delivered an average 3X return by aligning market selection, construction discipline, and tax strategy. Tucson Arizona remains a key market because pricing, construction styles, and depreciation benefits work together.
Investors exploring self storage opportunities or seeking clarity on tax advantages are always welcome to contact us to learn more.