The US industrial sector has been a standout performer for much of the past decade, with returns outpacing the benchmark for 38 of the past 40 quarters. This was driven in large part by the explosive growth of ecommerce sales as consumers quickly warmed to the convenience of having the things they wanted delivered directly to their door, with ever faster delivery times. This rising tide of demand lifted all ships, and as a result, nearly all industrial assets performed admirably.
While these trends should still drive demand, the outperformance looks to be normalising, and asset selection will become increasingly important going forward. Along those lines, we expect industrial outdoor storage (IOS) assets will continue to be top performers in the industrial sector. Despite being misunderstood and often overlooked, these assets will benefit from a resilient demand profile, greater supply constraints and an ability to generate
