Unlocking the potential of industrial outdoor storage: A growing investment opportunity in the evolving real estate landscape
Industrial outdoor storage (IOS) is industrial-zoned land primarily used for the storage of trucks, trailers, vans, large equipment, containers and materials. The land can be improved by installing pavement, perimeter fencing and ﬂood lighting. The deﬁning factor of IOS, as compared with traditional enclosed industrial, is that the primary value is derived from the open, horizontal outdoor space, rather than a vertical building. This is reﬂected in the way IOS properties are rented on a per acre basis as opposed to per square foot. Any enclosed spaces on an IOS property serve ancillary purposes, such as truck maintenance and repair, loading and unloading, or back-ofﬁce needs, and typically make up less than 20 percent of the property.
Location is a critical factor for IOS sites and demand is largely driven by proximity to both multiple transportation options as well as dense populations. Site selection is also affected by local zoning regulations and macroeconomic dri