Opportunities for investment in the IOS sector

Industrial outdoor storage, or IOS, is a small but growing segment of the commercial real estate market that is receiving increased attention from institutional investors.

“IOS is a niche sector within the commercial property market that is experiencing growing investor demand,” noted John Maurer, senior managing director, head of portfolio management, at EverWest, in an interview with IREI. The attractiveness of an IOS investment is in part because it, like the industrial sector in general, has experienced strong operating results, rental rate growth due to favorable supply/demand fundamentals, and generally low capital expenditure requirements, he added.

A recent report from Green Street noted the rising popularity of IOS among institutional investors. According to the report,