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Opportunities for investment in industrial outdoor storage
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,” notes John Maurer, senior managing director, head of portfolio management, at EverWest. Several of the attractive features of an IOS investment are that it, like the industrial sector in general, has experienced strong operating results, rental rate growth due to favorable demand and supply fundamentals, and generally low capital expenditure requirements, he adds.
A recent report from Green Street identified the rising popularity of IOS among institutional investors. According to the report, Industrial Outdoor Storage: A Beautiful Ugly Duckling, “the supply outlook for infill IOS appears to be one of the most attractive in all commercial real estate.”
Maurer says infill