Marcus & Millichap has published a special report on industrial outdoor storage (IOS) properties.
“As growing ecommerce underscores the need for this historically lesser-known segment of the industrial sector, IOS properties have emerged as some of the most prominent niche commercial real estate investments in the marketplace today,” said Alan Pontius, senior vice president and national director of Marcus & Millichap’s office and industrial divisions. “Because IOS supply is limited, a level of durability that is highly favorable for investors exists, and as IOS lots serve a mission-critical support role in last-mile distribution, the asset class has now come to the attention of investors on a broad scale.”
The report states that while no two IOS properties are the same, all feature outdoor storage as the primary demand driver, housing everything from cargo containers to delivery vehicles, and the machinery needed to service those vehicles. IOS lots