Institutional interest in the industrial outdoor storage (IOS) sector will increase in the coming years. There are significant untapped opportunities for investors and developers, according to Lisa DeNight, managing director and head of North American Industrial Research at Newmark, and Jamil Harkness, a national industrial senior research analyst at the firm. The pair, who co-authored Newmark’s Industrial Insight: Lots to Gain report, shared their insights in an interview with Institutional Real Estate, Inc., parent company of Real Assets Adviser.

Investors looking at the IOS space should focus on three main categories: zoning, environmental considerations, and seller motivation. Zoning and permitting can be challenging, as some communities may have concerns about the impact of these operations. As DeNight explains, “Many people unfamiliar with the sector don’t realize how many changes to zoning can happen and how much they can impact the space.” Sh